Correlation Between Integragen and Cnova NV

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

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

Diversification Opportunities for Integragen and Cnova NV

0.08

Correlation Coefficient

Integragen  Cnova NV

Significant diversification

The 3 months correlation between Integragen and Cnova is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Integragen and Cnova NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnova NV and Integragen 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 Integragen are associated (or correlated) with Cnova NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnova NV has no effect on the direction of Integragen i.e., Integragen and Cnova NV go up and down completely randomly.

Pair Corralation between Integragen and Cnova NV

Assuming the 90 days trading horizon Integragen is expected to generate 0.66 times more return on investment than Cnova NV. However, Integragen is 1.51 times less risky than Cnova NV. It trades about 0.04 of its potential returns per unit of risk. Cnova NV is currently generating about -0.06 per unit of risk. If you would invest  52.00  in Integragen on December 24, 2024 and sell it today you would earn a total of  2.00  from holding Integragen or generate 3.85% return on investment over 90 days.

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

Integragen  vs.  Cnova NV

Integragen

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integragen are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Integragen may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cnova NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cnova NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Integragen and Cnova NV

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

The idea behind Integragen and Cnova NV 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.