Correlation Between Fill Up and Elior SCA

Can any of the company-specific risk be diversified away by investing in both Fill Up and Elior SCA 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 Fill Up and Elior SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fill Up Media and Elior SCA, you can compare the effects of market volatilities on Fill Up and Elior SCA 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 Fill Up with a short position of Elior SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fill Up and Elior SCA.

Diversification Opportunities for Fill Up and Elior SCA

-0.77

Correlation Coefficient

Fill Up  Elior SCA

Pay attention - limited upside

The 3 months correlation between Fill and Elior is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fill Up Media and Elior SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elior SCA and Fill Up 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 Fill Up Media are associated (or correlated) with Elior SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elior SCA has no effect on the direction of Fill Up i.e., Fill Up and Elior SCA go up and down completely randomly.

Pair Corralation between Fill Up and Elior SCA

Assuming the 90 days trading horizon Fill Up Media is expected to under-perform the Elior SCA. But the stock apears to be less risky and, when comparing its historical volatility, Fill Up Media is 1.42 times less risky than Elior SCA. The stock trades about -0.02 of its potential returns per unit of risk. The Elior SCA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  388.00  in Elior SCA on September 29, 2024 and sell it today you would lose (115.00) from holding Elior SCA or give up 29.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Fill Up Media  vs.  Elior SCA

Fill Up Media

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Fill Up Media are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fill Up may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Elior SCA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elior SCA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Fill Up and Elior SCA

The main advantage of trading using opposite Fill Up and Elior SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fill Up position performs unexpectedly, Elior SCA 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 Elior SCA will offset losses from the drop in Elior SCA's long position.

The idea behind Fill Up Media and Elior SCA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.