Correlation Between Television Francaise and SES S
Can any of the company-specific risk be diversified away by investing in both Television Francaise and SES S 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 SES S 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 SES S A, you can compare the effects of market volatilities on Television Francaise and SES S 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 SES S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Television Francaise and SES S.
Diversification Opportunities for Television Francaise and SES S
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Television and SES is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Television Francaise 1 and SES S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SES S A 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 SES S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SES S A has no effect on the direction of Television Francaise i.e., Television Francaise and SES S go up and down completely randomly.
Pair Corralation between Television Francaise and SES S
Assuming the 90 days trading horizon Television Francaise 1 is expected to generate 0.72 times more return on investment than SES S. However, Television Francaise 1 is 1.4 times less risky than SES S. It trades about 0.03 of its potential returns per unit of risk. SES S A is currently generating about -0.03 per unit of risk. If you would invest 629.00 in Television Francaise 1 on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Television Francaise 1 or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Television Francaise 1 vs. SES S A
Performance |
| Timeline |
| Television Francaise |
| SES S A |
Television Francaise and SES S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Television Francaise and SES S
The main advantage of trading using opposite Television Francaise and SES S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Television Francaise position performs unexpectedly, SES S 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 SES S will offset losses from the drop in SES S's long position.| Television Francaise vs. Nexity | Television Francaise vs. Lagardere SCA | Television Francaise vs. Eutelsat Communications SA | Television Francaise vs. SCOR SE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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