Correlation Between Vivendi SE and CANADIAN NORTH
Can any of the company-specific risk be diversified away by investing in both Vivendi SE and CANADIAN NORTH 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 SE and CANADIAN NORTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivendi SE and CANADIAN NORTH RESOURCES, you can compare the effects of market volatilities on Vivendi SE and CANADIAN NORTH 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 SE with a short position of CANADIAN NORTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivendi SE and CANADIAN NORTH.
Diversification Opportunities for Vivendi SE and CANADIAN NORTH
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vivendi and CANADIAN is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Vivendi SE and CANADIAN NORTH RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANADIAN NORTH RESOURCES and Vivendi SE 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 SE are associated (or correlated) with CANADIAN NORTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CANADIAN NORTH RESOURCES has no effect on the direction of Vivendi SE i.e., Vivendi SE and CANADIAN NORTH go up and down completely randomly.
Pair Corralation between Vivendi SE and CANADIAN NORTH
Assuming the 90 days trading horizon Vivendi SE is expected to generate 2.57 times more return on investment than CANADIAN NORTH. However, Vivendi SE is 2.57 times more volatile than CANADIAN NORTH RESOURCES. It trades about 0.09 of its potential returns per unit of risk. CANADIAN NORTH RESOURCES is currently generating about -0.2 per unit of risk. If you would invest 258.00 in Vivendi SE on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Vivendi SE or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivendi SE vs. CANADIAN NORTH RESOURCES
Performance |
| Timeline |
| Vivendi SE |
| CANADIAN NORTH RESOURCES |
Vivendi SE and CANADIAN NORTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivendi SE and CANADIAN NORTH
The main advantage of trading using opposite Vivendi SE and CANADIAN NORTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivendi SE position performs unexpectedly, CANADIAN NORTH 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 CANADIAN NORTH will offset losses from the drop in CANADIAN NORTH's long position.| Vivendi SE vs. Coeur Mining | Vivendi SE vs. Ross Stores | Vivendi SE vs. FIREWEED METALS P | Vivendi SE vs. GREENX METALS LTD |
| CANADIAN NORTH vs. Zurich Insurance Group | CANADIAN NORTH vs. Monster Beverage Corp | CANADIAN NORTH vs. REVO INSURANCE SPA | CANADIAN NORTH vs. BOSTON BEER 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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