Correlation Between Crdit Agricole and BlueScope Steel
Can any of the company-specific risk be diversified away by investing in both Crdit Agricole and BlueScope Steel 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 Crdit Agricole and BlueScope Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crdit Agricole SA and BlueScope Steel Limited, you can compare the effects of market volatilities on Crdit Agricole and BlueScope Steel 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 Crdit Agricole with a short position of BlueScope Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crdit Agricole and BlueScope Steel.
Diversification Opportunities for Crdit Agricole and BlueScope Steel
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crdit and BlueScope is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Crdit Agricole SA and BlueScope Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueScope Steel and Crdit Agricole 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 Crdit Agricole SA are associated (or correlated) with BlueScope Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueScope Steel has no effect on the direction of Crdit Agricole i.e., Crdit Agricole and BlueScope Steel go up and down completely randomly.
Pair Corralation between Crdit Agricole and BlueScope Steel
Assuming the 90 days horizon Crdit Agricole SA is expected to under-perform the BlueScope Steel. But the stock apears to be less risky and, when comparing its historical volatility, Crdit Agricole SA is 1.24 times less risky than BlueScope Steel. The stock trades about 0.0 of its potential returns per unit of risk. The BlueScope Steel Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,340 in BlueScope Steel Limited on September 13, 2024 and sell it today you would earn a total of 0.00 from holding BlueScope Steel Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crdit Agricole SA vs. BlueScope Steel Limited
Performance |
| Timeline |
| Crdit Agricole SA |
| BlueScope Steel |
Crdit Agricole and BlueScope Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crdit Agricole and BlueScope Steel
The main advantage of trading using opposite Crdit Agricole and BlueScope Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crdit Agricole position performs unexpectedly, BlueScope Steel 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 BlueScope Steel will offset losses from the drop in BlueScope Steel's long position.| Crdit Agricole vs. EAGLE MATERIALS | Crdit Agricole vs. Corporate Office Properties | Crdit Agricole vs. Taylor Morrison Home | Crdit Agricole vs. Neinor Homes SA |
| BlueScope Steel vs. United Insurance Holdings | BlueScope Steel vs. Insurance Australia Group | BlueScope Steel vs. LPKF Laser Electronics | BlueScope Steel vs. Ping An Insurance |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |