Correlation Between Crédit Agricole and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both Crédit Agricole and Lloyds Banking 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 Lloyds Banking 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 Lloyds Banking Group, you can compare the effects of market volatilities on Crédit Agricole and Lloyds Banking 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 Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crédit Agricole and Lloyds Banking.
Diversification Opportunities for Crédit Agricole and Lloyds Banking
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crédit and Lloyds is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Crdit Agricole SA and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group 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 Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of Crédit Agricole i.e., Crédit Agricole and Lloyds Banking go up and down completely randomly.
Pair Corralation between Crédit Agricole and Lloyds Banking
Assuming the 90 days horizon Crdit Agricole SA is expected to generate 0.68 times more return on investment than Lloyds Banking. However, Crdit Agricole SA is 1.48 times less risky than Lloyds Banking. It trades about 0.06 of its potential returns per unit of risk. Lloyds Banking Group is currently generating about 0.03 per unit of risk. If you would invest 906.00 in Crdit Agricole SA on October 15, 2024 and sell it today you would earn a total of 445.00 from holding Crdit Agricole SA or generate 49.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crdit Agricole SA vs. Lloyds Banking Group
Performance |
| Timeline |
| Crdit Agricole SA |
| Lloyds Banking Group |
Crédit Agricole and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crédit Agricole and Lloyds Banking
The main advantage of trading using opposite Crédit Agricole and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crédit Agricole position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| Crédit Agricole vs. Sterling Construction | Crédit Agricole vs. AM EAGLE OUTFITTERS | Crédit Agricole vs. Daito Trust Construction | Crédit Agricole vs. Hanison Construction Holdings |
| Lloyds Banking vs. Magnachip Semiconductor | Lloyds Banking vs. Tower Semiconductor | Lloyds Banking vs. Canon Marketing Japan | Lloyds Banking vs. FLOW TRADERS 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |