Correlation Between Corporate Office and Crdit Agricole
Can any of the company-specific risk be diversified away by investing in both Corporate Office and Crdit Agricole 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 Corporate Office and Crdit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Office Properties and Crdit Agricole SA, you can compare the effects of market volatilities on Corporate Office and Crdit Agricole 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 Corporate Office with a short position of Crdit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and Crdit Agricole.
Diversification Opportunities for Corporate Office and Crdit Agricole
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Corporate and Crdit is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and Crdit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crdit Agricole SA and Corporate Office 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 Corporate Office Properties are associated (or correlated) with Crdit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crdit Agricole SA has no effect on the direction of Corporate Office i.e., Corporate Office and Crdit Agricole go up and down completely randomly.
Pair Corralation between Corporate Office and Crdit Agricole
Assuming the 90 days horizon Corporate Office Properties is expected to generate 0.76 times more return on investment than Crdit Agricole. However, Corporate Office Properties is 1.32 times less risky than Crdit Agricole. It trades about 0.18 of its potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.03 per unit of risk. If you would invest 2,940 in Corporate Office Properties on September 14, 2024 and sell it today you would earn a total of 160.00 from holding Corporate Office Properties or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Office Properties vs. Crdit Agricole SA
Performance |
| Timeline |
| Corporate Office Pro |
| Crdit Agricole SA |
Corporate Office and Crdit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and Crdit Agricole
The main advantage of trading using opposite Corporate Office and Crdit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office position performs unexpectedly, Crdit Agricole 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 Crdit Agricole will offset losses from the drop in Crdit Agricole's long position.| Corporate Office vs. ORIX JREIT INC | Corporate Office vs. Superior Plus Corp | Corporate Office vs. SIVERS SEMICONDUCTORS AB | Corporate Office vs. Norsk Hydro ASA |
| Crdit Agricole vs. Datadog | Crdit Agricole vs. BURLINGTON STORES | Crdit Agricole vs. QURATE RETAIL INC | Crdit Agricole vs. DATANG INTL POW |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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