Correlation Between Stef SA and Claranova
Can any of the company-specific risk be diversified away by investing in both Stef SA and Claranova at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Stef SA and Claranova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stef SA and Claranova SE, you can compare the effects of market volatilities on Stef SA and Claranova and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Stef SA with a short position of Claranova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stef SA and Claranova.
Diversification Opportunities for Stef SA and Claranova
Very weak diversification
The 3 months correlation between Stef and Claranova is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Stef SA and Claranova SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Claranova SE and Stef SA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Stef SA are associated (or correlated) with Claranova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Claranova SE has no effect on the direction of Stef SA i.e., Stef SA and Claranova go up and down completely randomly.
Pair Corralation between Stef SA and Claranova
Assuming the 90 days trading horizon Stef SA is expected to generate 1.47 times less return on investment than Claranova. But when comparing it to its historical volatility, Stef SA is 1.84 times less risky than Claranova. It trades about 0.2 of its potential returns per unit of risk. Claranova SE is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 118.00 in Claranova SE on October 25, 2024 and sell it today you would earn a total of 8.00 from holding Claranova SE or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stef SA vs. Claranova SE
Performance |
| Timeline |
| Stef SA |
| Claranova SE |
Stef SA and Claranova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stef SA and Claranova
The main advantage of trading using opposite Stef SA and Claranova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stef SA position performs unexpectedly, Claranova can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Claranova will offset losses from the drop in Claranova's long position.The idea behind Stef SA and Claranova SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Claranova vs. Solutions 30 SE | Claranova vs. BigBen Interactive | Claranova vs. SA Catana Group | Claranova vs. Solocal Group SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |