Correlation Between CREDIT AGRICOLE and REVO INSURANCE
Can any of the company-specific risk be diversified away by investing in both CREDIT AGRICOLE and REVO INSURANCE 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 CREDIT AGRICOLE and REVO INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREDIT AGRICOLE and REVO INSURANCE SPA, you can compare the effects of market volatilities on CREDIT AGRICOLE and REVO INSURANCE 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 CREDIT AGRICOLE with a short position of REVO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDIT AGRICOLE and REVO INSURANCE.
Diversification Opportunities for CREDIT AGRICOLE and REVO INSURANCE
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CREDIT and REVO is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CREDIT AGRICOLE and REVO INSURANCE SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REVO INSURANCE SPA and CREDIT 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 CREDIT AGRICOLE are associated (or correlated) with REVO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REVO INSURANCE SPA has no effect on the direction of CREDIT AGRICOLE i.e., CREDIT AGRICOLE and REVO INSURANCE go up and down completely randomly.
Pair Corralation between CREDIT AGRICOLE and REVO INSURANCE
Assuming the 90 days trading horizon CREDIT AGRICOLE is expected to under-perform the REVO INSURANCE. In addition to that, CREDIT AGRICOLE is 1.12 times more volatile than REVO INSURANCE SPA. It trades about -0.32 of its total potential returns per unit of risk. REVO INSURANCE SPA is currently generating about 0.16 per unit of volatility. If you would invest 1,000.00 in REVO INSURANCE SPA on August 28, 2024 and sell it today you would earn a total of 45.00 from holding REVO INSURANCE SPA or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CREDIT AGRICOLE vs. REVO INSURANCE SPA
Performance |
| Timeline |
| CREDIT AGRICOLE |
| REVO INSURANCE SPA |
CREDIT AGRICOLE and REVO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDIT AGRICOLE and REVO INSURANCE
The main advantage of trading using opposite CREDIT AGRICOLE and REVO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDIT AGRICOLE position performs unexpectedly, REVO INSURANCE 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 REVO INSURANCE will offset losses from the drop in REVO INSURANCE's long position.| CREDIT AGRICOLE vs. Transport International Holdings | CREDIT AGRICOLE vs. MUTUIONLINE | CREDIT AGRICOLE vs. Gaztransport Technigaz SA | CREDIT AGRICOLE vs. TRAINLINE PLC LS |
| REVO INSURANCE vs. Ares Management Corp | REVO INSURANCE vs. Southwest Airlines Co | REVO INSURANCE vs. Jupiter Fund Management | REVO INSURANCE vs. Perdoceo Education |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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