Correlation Between TaTaTu SpA and Caisse Regionale

Can any of the company-specific risk be diversified away by investing in both TaTaTu SpA and Caisse Regionale 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 TaTaTu SpA and Caisse Regionale into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TaTaTu SpA and Caisse Regionale de, you can compare the effects of market volatilities on TaTaTu SpA and Caisse Regionale 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 TaTaTu SpA with a short position of Caisse Regionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of TaTaTu SpA and Caisse Regionale.

Diversification Opportunities for TaTaTu SpA and Caisse Regionale

0.0

Correlation Coefficient

TaTaTu SpA  Caisse Regionale

Pay attention - limited upside

The 3 months correlation between TaTaTu and Caisse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TaTaTu SpA and Caisse Regionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Regionale and TaTaTu SpA 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 TaTaTu SpA are associated (or correlated) with Caisse Regionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse Regionale has no effect on the direction of TaTaTu SpA i.e., TaTaTu SpA and Caisse Regionale go up and down completely randomly.

Pair Corralation between TaTaTu SpA and Caisse Regionale

If you would invest  1,745  in Caisse Regionale de on September 3, 2024 and sell it today you would earn a total of  5.00  from holding Caisse Regionale de or generate 0.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TaTaTu SpA  vs.  Caisse Regionale de

TaTaTu SpA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TaTaTu SpA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, TaTaTu SpA is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Caisse Regionale

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Caisse Regionale de has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Caisse Regionale is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with TaTaTu SpA and Caisse Regionale

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

The idea behind TaTaTu SpA and Caisse Regionale de 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.