Correlation Between Credit Agricole and Copper For
Can any of the company-specific risk be diversified away by investing in both Credit Agricole and Copper For 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 Credit Agricole and Copper For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Agricole Egypt and Copper For Commercial, you can compare the effects of market volatilities on Credit Agricole and Copper For 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 Credit Agricole with a short position of Copper For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Agricole and Copper For.
Diversification Opportunities for Credit Agricole and Copper For
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Credit and Copper is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Credit Agricole Egypt and Copper For Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper For Commercial and Credit Agricole 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 Credit Agricole Egypt are associated (or correlated) with Copper For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper For Commercial has no effect on the direction of Credit Agricole i.e., Credit Agricole and Copper For go up and down completely randomly.
Pair Corralation between Credit Agricole and Copper For
Assuming the 90 days trading horizon Credit Agricole is expected to generate 1.39 times less return on investment than Copper For. But when comparing it to its historical volatility, Credit Agricole Egypt is 2.45 times less risky than Copper For. It trades about 0.23 of its potential returns per unit of risk. Copper For Commercial is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Copper For Commercial on December 30, 2024 and sell it today you would earn a total of 8.00 from holding Copper For Commercial or generate 22.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Credit Agricole Egypt vs. Copper For Commercial
Performance |
Timeline |
Credit Agricole Egypt |
Copper For Commercial |
Credit Agricole and Copper For Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Credit Agricole and Copper For
The main advantage of trading using opposite Credit Agricole and Copper For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Agricole position performs unexpectedly, Copper For 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 Copper For will offset losses from the drop in Copper For's long position.Credit Agricole vs. Global Telecom Holding | Credit Agricole vs. Egyptian Iron Steel | Credit Agricole vs. Egyptian Chemical Industries | Credit Agricole vs. Natural Gas Mining |
Copper For vs. Saudi Egyptian Investment | Copper For vs. El Ahli Investment | Copper For vs. Atlas For Investment | Copper For vs. Grand Investment Capital |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |