Correlation Between Crédit Agricole and SPORTING
Can any of the company-specific risk be diversified away by investing in both Crédit Agricole and SPORTING 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 SPORTING 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 SPORTING, you can compare the effects of market volatilities on Crédit Agricole and SPORTING 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 SPORTING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crédit Agricole and SPORTING.
Diversification Opportunities for Crédit Agricole and SPORTING
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crédit and SPORTING is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Crdit Agricole SA and SPORTING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPORTING 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 SPORTING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPORTING has no effect on the direction of Crédit Agricole i.e., Crédit Agricole and SPORTING go up and down completely randomly.
Pair Corralation between Crédit Agricole and SPORTING
If you would invest 1,441 in Crdit Agricole SA on November 29, 2024 and sell it today you would earn a total of 133.00 from holding Crdit Agricole SA or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Crdit Agricole SA vs. SPORTING
Performance |
| Timeline |
| Crdit Agricole SA |
| SPORTING |
Crédit Agricole and SPORTING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crédit Agricole and SPORTING
The main advantage of trading using opposite Crédit Agricole and SPORTING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crédit Agricole position performs unexpectedly, SPORTING 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 SPORTING will offset losses from the drop in SPORTING's long position.| Crédit Agricole vs. Retail Estates NV | Crédit Agricole vs. Burlington Stores | Crédit Agricole vs. FARO TECHNOLOGIES | Crédit Agricole vs. Easy Software AG |
| SPORTING vs. Australian Agricultural | SPORTING vs. CHRYSALIS INVESTMENTS LTD | SPORTING vs. TITAN MACHINERY | SPORTING vs. DAIRY FARM INTL |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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