Correlation Between Tradegate and CREDIT AGRICOLE
Can any of the company-specific risk be diversified away by investing in both Tradegate and CREDIT AGRICOLE 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 Tradegate and CREDIT AGRICOLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and CREDIT AGRICOLE, you can compare the effects of market volatilities on Tradegate and CREDIT AGRICOLE 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 Tradegate with a short position of CREDIT AGRICOLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and CREDIT AGRICOLE.
Diversification Opportunities for Tradegate and CREDIT AGRICOLE
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tradegate and CREDIT is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and CREDIT AGRICOLE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT AGRICOLE and Tradegate 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 Tradegate AG Wertpapierhandelsbank are associated (or correlated) with CREDIT AGRICOLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT AGRICOLE has no effect on the direction of Tradegate i.e., Tradegate and CREDIT AGRICOLE go up and down completely randomly.
Pair Corralation between Tradegate and CREDIT AGRICOLE
Assuming the 90 days horizon Tradegate AG Wertpapierhandelsbank is expected to generate 0.76 times more return on investment than CREDIT AGRICOLE. However, Tradegate AG Wertpapierhandelsbank is 1.31 times less risky than CREDIT AGRICOLE. It trades about 0.0 of its potential returns per unit of risk. CREDIT AGRICOLE is currently generating about -0.09 per unit of risk. If you would invest 8,850 in Tradegate AG Wertpapierhandelsbank on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Tradegate AG Wertpapierhandelsbank or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. CREDIT AGRICOLE
Performance |
Timeline |
Tradegate AG Wertpap |
CREDIT AGRICOLE |
Tradegate and CREDIT AGRICOLE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tradegate and CREDIT AGRICOLE
The main advantage of trading using opposite Tradegate and CREDIT AGRICOLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, CREDIT AGRICOLE 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 CREDIT AGRICOLE will offset losses from the drop in CREDIT AGRICOLE's long position.Tradegate vs. Morgan Stanley | Tradegate vs. Morgan Stanley | Tradegate vs. The Charles Schwab | Tradegate vs. The Goldman Sachs |
CREDIT AGRICOLE vs. Flutter Entertainment PLC | CREDIT AGRICOLE vs. Ubisoft Entertainment SA | CREDIT AGRICOLE vs. PLAYSTUDIOS A DL 0001 | CREDIT AGRICOLE vs. SOFI TECHNOLOGIES |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |