Correlation Between Credit Agricole and ODIN Investments
Can any of the company-specific risk be diversified away by investing in both Credit Agricole and ODIN Investments 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 ODIN Investments 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 ODIN Investments, you can compare the effects of market volatilities on Credit Agricole and ODIN Investments 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 ODIN Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Agricole and ODIN Investments.
Diversification Opportunities for Credit Agricole and ODIN Investments
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Credit and ODIN is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Credit Agricole Egypt and ODIN Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ODIN Investments 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 ODIN Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ODIN Investments has no effect on the direction of Credit Agricole i.e., Credit Agricole and ODIN Investments go up and down completely randomly.
Pair Corralation between Credit Agricole and ODIN Investments
Assuming the 90 days trading horizon Credit Agricole Egypt is expected to generate 0.66 times more return on investment than ODIN Investments. However, Credit Agricole Egypt is 1.51 times less risky than ODIN Investments. It trades about 0.23 of its potential returns per unit of risk. ODIN Investments is currently generating about 0.05 per unit of risk. If you would invest 1,900 in Credit Agricole Egypt on December 29, 2024 and sell it today you would earn a total of 331.00 from holding Credit Agricole Egypt or generate 17.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Credit Agricole Egypt vs. ODIN Investments
Performance |
Timeline |
Credit Agricole Egypt |
ODIN Investments |
Credit Agricole and ODIN Investments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Credit Agricole and ODIN Investments
The main advantage of trading using opposite Credit Agricole and ODIN Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Agricole position performs unexpectedly, ODIN Investments 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 ODIN Investments will offset losses from the drop in ODIN Investments' 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 |
ODIN Investments vs. Speed Medical | ODIN Investments vs. Grand Investment Capital | ODIN Investments vs. Saudi Egyptian Investment | ODIN Investments vs. Nozha International Hospital |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |