Correlation Between Stellantis and Euroapi SAS
Can any of the company-specific risk be diversified away by investing in both Stellantis and Euroapi SAS 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 Stellantis and Euroapi SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellantis NV and Euroapi SAS, you can compare the effects of market volatilities on Stellantis and Euroapi SAS 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 Stellantis with a short position of Euroapi SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellantis and Euroapi SAS.
Diversification Opportunities for Stellantis and Euroapi SAS
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stellantis and Euroapi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Stellantis NV and Euroapi SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euroapi SAS and Stellantis 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 Stellantis NV are associated (or correlated) with Euroapi SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euroapi SAS has no effect on the direction of Stellantis i.e., Stellantis and Euroapi SAS go up and down completely randomly.
Pair Corralation between Stellantis and Euroapi SAS
Assuming the 90 days trading horizon Stellantis NV is expected to under-perform the Euroapi SAS. But the stock apears to be less risky and, when comparing its historical volatility, Stellantis NV is 1.57 times less risky than Euroapi SAS. The stock trades about -0.02 of its potential returns per unit of risk. The Euroapi SAS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Euroapi SAS on August 30, 2024 and sell it today you would earn a total of 11.00 from holding Euroapi SAS or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Stellantis NV vs. Euroapi SAS
Performance |
| Timeline |
| Stellantis NV |
| Euroapi SAS |
Stellantis and Euroapi SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellantis and Euroapi SAS
The main advantage of trading using opposite Stellantis and Euroapi SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellantis position performs unexpectedly, Euroapi SAS 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 Euroapi SAS will offset losses from the drop in Euroapi SAS's long position.| Stellantis vs. LVMH Mot Hennessy | Stellantis vs. LOreal SA | Stellantis vs. Hermes International SCA | Stellantis vs. Manitou BF SA |
| Euroapi SAS vs. Sanofi SA | Euroapi SAS vs. TotalEnergies SE | Euroapi SAS vs. Stellantis NV | Euroapi SAS vs. Gaztransport Technigaz SAS |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |