Correlation Between Vivendi SE and Charoen Pokphand
Can any of the company-specific risk be diversified away by investing in both Vivendi SE and Charoen Pokphand 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 Vivendi SE and Charoen Pokphand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivendi SE and Charoen Pokphand Foods, you can compare the effects of market volatilities on Vivendi SE and Charoen Pokphand 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 Vivendi SE with a short position of Charoen Pokphand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivendi SE and Charoen Pokphand.
Diversification Opportunities for Vivendi SE and Charoen Pokphand
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vivendi and Charoen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Vivendi SE and Charoen Pokphand Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charoen Pokphand Foods and Vivendi SE 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 Vivendi SE are associated (or correlated) with Charoen Pokphand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charoen Pokphand Foods has no effect on the direction of Vivendi SE i.e., Vivendi SE and Charoen Pokphand go up and down completely randomly.
Pair Corralation between Vivendi SE and Charoen Pokphand
Assuming the 90 days horizon Vivendi SE is expected to under-perform the Charoen Pokphand. In addition to that, Vivendi SE is 5.21 times more volatile than Charoen Pokphand Foods. It trades about -0.08 of its total potential returns per unit of risk. Charoen Pokphand Foods is currently generating about -0.01 per unit of volatility. If you would invest 64.00 in Charoen Pokphand Foods on September 25, 2024 and sell it today you would lose (2.00) from holding Charoen Pokphand Foods or give up 3.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Vivendi SE vs. Charoen Pokphand Foods
Performance |
Timeline |
Vivendi SE |
Charoen Pokphand Foods |
Vivendi SE and Charoen Pokphand Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vivendi SE and Charoen Pokphand
The main advantage of trading using opposite Vivendi SE and Charoen Pokphand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivendi SE position performs unexpectedly, Charoen Pokphand 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 Charoen Pokphand will offset losses from the drop in Charoen Pokphand's long position.Vivendi SE vs. COMINTL BANK ADR1 | Vivendi SE vs. Ameriprise Financial | Vivendi SE vs. Aozora Bank | Vivendi SE vs. CHIBA BANK |
Charoen Pokphand vs. AVITA Medical | Charoen Pokphand vs. ADRIATIC METALS LS 013355 | Charoen Pokphand vs. GRIFFIN MINING LTD | Charoen Pokphand vs. MAGNUM MINING EXP |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |