Correlation Between Crédit Agricole and EAGLE MATERIALS
Can any of the company-specific risk be diversified away by investing in both Crédit Agricole and EAGLE MATERIALS 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 Crédit Agricole and EAGLE MATERIALS 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 EAGLE MATERIALS, you can compare the effects of market volatilities on Crédit Agricole and EAGLE MATERIALS 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 Crédit Agricole with a short position of EAGLE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crédit Agricole and EAGLE MATERIALS.
Diversification Opportunities for Crédit Agricole and EAGLE MATERIALS
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crédit and EAGLE is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Crdit Agricole SA and EAGLE MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS and Crédit 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 EAGLE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS has no effect on the direction of Crédit Agricole i.e., Crédit Agricole and EAGLE MATERIALS go up and down completely randomly.
Pair Corralation between Crédit Agricole and EAGLE MATERIALS
Assuming the 90 days horizon Crdit Agricole SA is expected to generate 0.73 times more return on investment than EAGLE MATERIALS. However, Crdit Agricole SA is 1.36 times less risky than EAGLE MATERIALS. It trades about 0.09 of its potential returns per unit of risk. EAGLE MATERIALS is currently generating about 0.07 per unit of risk. If you would invest 869.00 in Crdit Agricole SA on December 4, 2024 and sell it today you would earn a total of 715.00 from holding Crdit Agricole SA or generate 82.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crdit Agricole SA vs. EAGLE MATERIALS
Performance |
| Timeline |
| Crdit Agricole SA |
| EAGLE MATERIALS |
Crédit Agricole and EAGLE MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crédit Agricole and EAGLE MATERIALS
The main advantage of trading using opposite Crédit Agricole and EAGLE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crédit Agricole position performs unexpectedly, EAGLE MATERIALS 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 EAGLE MATERIALS will offset losses from the drop in EAGLE MATERIALS's long position.| Crédit Agricole vs. BG Foods | Crédit Agricole vs. MOLSON RS BEVERAGE | Crédit Agricole vs. High Liner Foods | Crédit Agricole vs. Sanyo Chemical Industries |
| EAGLE MATERIALS vs. De Grey Mining | EAGLE MATERIALS vs. Chengdu PUTIAN Telecommunications | EAGLE MATERIALS vs. Jacquet Metal Service | EAGLE MATERIALS vs. GALENA MINING LTD |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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