Correlation Between Vivendi SA and Celtic Plc
Can any of the company-specific risk be diversified away by investing in both Vivendi SA and Celtic Plc 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 Vivendi SA and Celtic Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivendi SA and Celtic plc, you can compare the effects of market volatilities on Vivendi SA and Celtic Plc 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 Vivendi SA with a short position of Celtic Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivendi SA and Celtic Plc.
Diversification Opportunities for Vivendi SA and Celtic Plc
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vivendi and Celtic is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Vivendi SA and Celtic plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celtic plc and Vivendi 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 Vivendi SA are associated (or correlated) with Celtic Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celtic plc has no effect on the direction of Vivendi SA i.e., Vivendi SA and Celtic Plc go up and down completely randomly.
Pair Corralation between Vivendi SA and Celtic Plc
Assuming the 90 days horizon Vivendi SA is expected to generate 3.74 times less return on investment than Celtic Plc. But when comparing it to its historical volatility, Vivendi SA is 2.21 times less risky than Celtic Plc. It trades about 0.03 of its potential returns per unit of risk. Celtic plc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Celtic plc on November 4, 2024 and sell it today you would earn a total of 71.00 from holding Celtic plc or generate 44.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.7% |
| Values | Daily Returns |
Vivendi SA vs. Celtic plc
Performance |
| Timeline |
| Vivendi SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Celtic plc |
Vivendi SA and Celtic Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivendi SA and Celtic Plc
The main advantage of trading using opposite Vivendi SA and Celtic Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivendi SA position performs unexpectedly, Celtic Plc 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 Celtic Plc will offset losses from the drop in Celtic Plc's long position.| Vivendi SA vs. Universal Music Group | Vivendi SA vs. Reservoir Media | Vivendi SA vs. Atlanta Braves Holdings, | Vivendi SA vs. Warner Music Group |
| Celtic Plc vs. Guild Esports Plc | Celtic Plc vs. Network Media Group | Celtic Plc vs. OverActive Media Corp | Celtic Plc vs. New Wave Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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