Correlation Between Cogra 48 and Carbios
Can any of the company-specific risk be diversified away by investing in both Cogra 48 and Carbios 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 Cogra 48 and Carbios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogra 48 Socit and Carbios, you can compare the effects of market volatilities on Cogra 48 and Carbios 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 Cogra 48 with a short position of Carbios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogra 48 and Carbios.
Diversification Opportunities for Cogra 48 and Carbios
Very poor diversification
The 3 months correlation between Cogra and Carbios is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Cogra 48 Socit and Carbios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carbios and Cogra 48 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 Cogra 48 Socit are associated (or correlated) with Carbios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carbios has no effect on the direction of Cogra 48 i.e., Cogra 48 and Carbios go up and down completely randomly.
Pair Corralation between Cogra 48 and Carbios
Assuming the 90 days trading horizon Cogra 48 Socit is expected to generate 0.25 times more return on investment than Carbios. However, Cogra 48 Socit is 4.06 times less risky than Carbios. It trades about -0.16 of its potential returns per unit of risk. Carbios is currently generating about -0.14 per unit of risk. If you would invest 700.00 in Cogra 48 Socit on September 24, 2024 and sell it today you would lose (134.00) from holding Cogra 48 Socit or give up 19.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Cogra 48 Socit vs. Carbios
Performance |
Timeline |
Cogra 48 Socit |
Carbios |
Cogra 48 and Carbios Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cogra 48 and Carbios
The main advantage of trading using opposite Cogra 48 and Carbios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogra 48 position performs unexpectedly, Carbios 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 Carbios will offset losses from the drop in Carbios' long position.Cogra 48 vs. SA Catana Group | Cogra 48 vs. Poujoulat SA | Cogra 48 vs. Piscines Desjoyaux SA | Cogra 48 vs. Reworld Media |
Carbios vs. SA Catana Group | Carbios vs. Poujoulat SA | Carbios vs. Piscines Desjoyaux SA | Carbios vs. Cogra 48 Socit |
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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