Correlation Between Atc Venture and Compagnie Gnrale

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

By analyzing existing cross correlation between Atc Venture Grp and Compagnie Gnrale des, you can compare the effects of market volatilities on Atc Venture and Compagnie Gnrale 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 Atc Venture with a short position of Compagnie Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atc Venture and Compagnie Gnrale.

Diversification Opportunities for Atc Venture and Compagnie Gnrale

0.0

Correlation Coefficient

Atc Venture  Compagnie Gnrale

Pay attention - limited upside

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

Pair Corralation between Atc Venture and Compagnie Gnrale

Given the investment horizon of 90 days Atc Venture Grp is expected to generate 11.89 times more return on investment than Compagnie Gnrale. However, Atc Venture is 11.89 times more volatile than Compagnie Gnrale des. It trades about 0.04 of its potential returns per unit of risk. Compagnie Gnrale des is currently generating about 0.03 per unit of risk. If you would invest  0.01  in Atc Venture Grp on October 24, 2024 and sell it today you would lose  0.00  from holding Atc Venture Grp or give up 0.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	85.05%
Values	Daily Returns

Atc Venture Grp  vs.  Compagnie Gnrale des

Atc Venture Grp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atc Venture Grp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Atc Venture is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Compagnie Gnrale des

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie Gnrale des are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Compagnie Gnrale may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Atc Venture and Compagnie Gnrale

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

The idea behind Atc Venture Grp and Compagnie Gnrale des 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.