Correlation Between Caisse Rgionale and SRP Groupe

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

By analyzing existing cross correlation between Caisse Rgionale de and SRP Groupe SA, you can compare the effects of market volatilities on Caisse Rgionale and SRP Groupe 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 Caisse Rgionale with a short position of SRP Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caisse Rgionale and SRP Groupe.

Diversification Opportunities for Caisse Rgionale and SRP Groupe

-0.71

Correlation Coefficient

Caisse Rgionale  SRP Groupe

Pay attention - limited upside

The 3 months correlation between Caisse and SRP is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Caisse Rgionale de and SRP Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRP Groupe SA and Caisse Rgionale 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 Caisse Rgionale de are associated (or correlated) with SRP Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRP Groupe SA has no effect on the direction of Caisse Rgionale i.e., Caisse Rgionale and SRP Groupe go up and down completely randomly.

Pair Corralation between Caisse Rgionale and SRP Groupe

Assuming the 90 days trading horizon Caisse Rgionale de is expected to generate 0.57 times more return on investment than SRP Groupe. However, Caisse Rgionale de is 1.77 times less risky than SRP Groupe. It trades about 0.29 of its potential returns per unit of risk. SRP Groupe SA is currently generating about -0.5 per unit of risk. If you would invest  6,051  in Caisse Rgionale de on September 27, 2024 and sell it today you would earn a total of  510.00  from holding Caisse Rgionale de or generate 8.43% return on investment over 90 days.

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

Caisse Rgionale de  vs.  SRP Groupe SA

Caisse Rgionale de

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Caisse Rgionale de are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Caisse Rgionale may actually be approaching a critical reversion point that can send shares even higher in January 2025.

SRP Groupe SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SRP Groupe SA 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 January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Caisse Rgionale and SRP Groupe

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

The idea behind Caisse Rgionale de and SRP Groupe SA 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.