Correlation Between Television Francaise and Lagardere SCA
Can any of the company-specific risk be diversified away by investing in both Television Francaise and Lagardere SCA 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 Television Francaise and Lagardere SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Television Francaise 1 and Lagardere SCA, you can compare the effects of market volatilities on Television Francaise and Lagardere SCA 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 Television Francaise with a short position of Lagardere SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Television Francaise and Lagardere SCA.
Diversification Opportunities for Television Francaise and Lagardere SCA
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Television and Lagardere is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Television Francaise 1 and Lagardere SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lagardere SCA and Television Francaise 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 Television Francaise 1 are associated (or correlated) with Lagardere SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lagardere SCA has no effect on the direction of Television Francaise i.e., Television Francaise and Lagardere SCA go up and down completely randomly.
Pair Corralation between Television Francaise and Lagardere SCA
Assuming the 90 days trading horizon Television Francaise 1 is expected to generate 0.66 times more return on investment than Lagardere SCA. However, Television Francaise 1 is 1.51 times less risky than Lagardere SCA. It trades about 0.07 of its potential returns per unit of risk. Lagardere SCA is currently generating about 0.02 per unit of risk. If you would invest 729.00 in Television Francaise 1 on October 26, 2024 and sell it today you would earn a total of 7.00 from holding Television Francaise 1 or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Television Francaise 1 vs. Lagardere SCA
Performance |
| Timeline |
| Television Francaise |
| Lagardere SCA |
Television Francaise and Lagardere SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Television Francaise and Lagardere SCA
The main advantage of trading using opposite Television Francaise and Lagardere SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Television Francaise position performs unexpectedly, Lagardere SCA 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 Lagardere SCA will offset losses from the drop in Lagardere SCA's long position.| Television Francaise vs. Mtropole Tlvision SA | Television Francaise vs. Lagardere SCA | Television Francaise vs. Bouygues SA | Television Francaise vs. Publicis Groupe SA |
| Lagardere SCA vs. Television Francaise 1 | Lagardere SCA vs. Publicis Groupe SA | Lagardere SCA vs. Bouygues SA | Lagardere SCA vs. Accor S A |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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