Correlation Between VOGO SA and Energisme

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

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

Diversification Opportunities for VOGO SA and Energisme

0.0

Correlation Coefficient

VOGO SA  Energisme

Pay attention - limited upside

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

Pair Corralation between VOGO SA and Energisme

If you would invest  0.55  in Energisme on September 26, 2024 and sell it today you would earn a total of  0.00  from holding Energisme or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

VOGO SA  vs.  Energisme

VOGO SA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Energisme

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Energisme are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Energisme may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with VOGO SA and Energisme

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

The idea behind VOGO SA and Energisme 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.