Correlation Between Goff Corp and Schneider Electric
Can any of the company-specific risk be diversified away by investing in both Goff Corp and Schneider Electric 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 Goff Corp and Schneider Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goff Corp and Schneider Electric SE, you can compare the effects of market volatilities on Goff Corp and Schneider Electric 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 Goff Corp with a short position of Schneider Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goff Corp and Schneider Electric.
Diversification Opportunities for Goff Corp and Schneider Electric
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goff and Schneider is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Goff Corp and Schneider Electric SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schneider Electric and Goff Corp 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 Goff Corp are associated (or correlated) with Schneider Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schneider Electric has no effect on the direction of Goff Corp i.e., Goff Corp and Schneider Electric go up and down completely randomly.
Pair Corralation between Goff Corp and Schneider Electric
Given the investment horizon of 90 days Goff Corp is expected to generate 4.67 times more return on investment than Schneider Electric. However, Goff Corp is 4.67 times more volatile than Schneider Electric SE. It trades about 0.0 of its potential returns per unit of risk. Schneider Electric SE is currently generating about -0.06 per unit of risk. If you would invest 1.00 in Goff Corp on September 12, 2024 and sell it today you would lose (0.13) from holding Goff Corp or give up 13.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goff Corp vs. Schneider Electric SE
Performance |
| Timeline |
| Goff Corp |
| Schneider Electric |
Goff Corp and Schneider Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goff Corp and Schneider Electric
The main advantage of trading using opposite Goff Corp and Schneider Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goff Corp position performs unexpectedly, Schneider Electric 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 Schneider Electric will offset losses from the drop in Schneider Electric's long position.| Goff Corp vs. Gold79 Mines | Goff Corp vs. Arctic Star Exploration | Goff Corp vs. Arras Minerals Corp | Goff Corp vs. American Creek Resources |
| Schneider Electric vs. SMC Corp Japan | Schneider Electric vs. Atlas Copco AB | Schneider Electric vs. Fanuc | Schneider Electric vs. Ebara Corp ADR |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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