Correlation Between Neoen SA and Kalray SA
Can any of the company-specific risk be diversified away by investing in both Neoen SA and Kalray 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 Neoen SA and Kalray SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neoen SA and Kalray SA, you can compare the effects of market volatilities on Neoen SA and Kalray 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 Neoen SA with a short position of Kalray SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neoen SA and Kalray SA.
Diversification Opportunities for Neoen SA and Kalray SA
Pay attention - limited upside
The 3 months correlation between Neoen and Kalray is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Neoen SA and Kalray SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalray SA and Neoen 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 Neoen SA are associated (or correlated) with Kalray SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalray SA has no effect on the direction of Neoen SA i.e., Neoen SA and Kalray SA go up and down completely randomly.
Pair Corralation between Neoen SA and Kalray SA
Assuming the 90 days trading horizon Neoen SA is expected to generate 0.01 times more return on investment than Kalray SA. However, Neoen SA is 86.99 times less risky than Kalray SA. It trades about 0.13 of its potential returns per unit of risk. Kalray SA is currently generating about 0.0 per unit of risk. If you would invest 3,892 in Neoen SA on September 24, 2024 and sell it today you would earn a total of 64.00 from holding Neoen SA or generate 1.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Neoen SA vs. Kalray SA
Performance |
Timeline |
Neoen SA |
Kalray SA |
Neoen SA and Kalray SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Neoen SA and Kalray SA
The main advantage of trading using opposite Neoen SA and Kalray SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neoen SA position performs unexpectedly, Kalray 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 Kalray SA will offset losses from the drop in Kalray SA's long position.Neoen SA vs. Gaztransport Technigaz SAS | Neoen SA vs. Carbios | Neoen SA vs. Manitou BF SA | Neoen SA vs. Memscap Regpt |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |