Correlation Between Xilam Animation and Samse SA
Can any of the company-specific risk be diversified away by investing in both Xilam Animation and Samse SA 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 Xilam Animation and Samse SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xilam Animation and Samse SA, you can compare the effects of market volatilities on Xilam Animation and Samse SA 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 Xilam Animation with a short position of Samse SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilam Animation and Samse SA.
Diversification Opportunities for Xilam Animation and Samse SA
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xilam and Samse is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xilam Animation and Samse SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samse SA and Xilam Animation 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 Xilam Animation are associated (or correlated) with Samse SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samse SA has no effect on the direction of Xilam Animation i.e., Xilam Animation and Samse SA go up and down completely randomly.
Pair Corralation between Xilam Animation and Samse SA
Assuming the 90 days trading horizon Xilam Animation is expected to under-perform the Samse SA. But the stock apears to be less risky and, when comparing its historical volatility, Xilam Animation is 1.22 times less risky than Samse SA. The stock trades about -0.22 of its potential returns per unit of risk. The Samse SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 14,100 in Samse SA on October 1, 2024 and sell it today you would earn a total of 200.00 from holding Samse SA or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilam Animation vs. Samse SA
Performance |
| Timeline |
| Xilam Animation |
| Samse SA |
Xilam Animation and Samse SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilam Animation and Samse SA
The main advantage of trading using opposite Xilam Animation and Samse SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilam Animation position performs unexpectedly, Samse SA 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 Samse SA will offset losses from the drop in Samse SA's long position.| Xilam Animation vs. Drone Volt SA | Xilam Animation vs. Oeneo SA | Xilam Animation vs. Stradim Espace Finances |
| Samse SA vs. ATEME SA | Samse SA vs. Figeac Aero SA | Samse SA vs. Chargeurs SA | Samse SA vs. Xilam Animation |
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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