Correlation Between Caisse Regionale and Ossiam Minimum

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

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

Diversification Opportunities for Caisse Regionale and Ossiam Minimum

0.0

Correlation Coefficient

Caisse Regionale  Ossiam Minimum

Pay attention - limited upside

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

Pair Corralation between Caisse Regionale and Ossiam Minimum

Assuming the 90 days trading horizon Caisse Regionale de is expected to generate 4.65 times more return on investment than Ossiam Minimum. However, Caisse Regionale is 4.65 times more volatile than Ossiam Minimum Variance. It trades about 0.05 of its potential returns per unit of risk. Ossiam Minimum Variance is currently generating about -0.04 per unit of risk. If you would invest  4,607  in Caisse Regionale de on September 4, 2024 and sell it today you would earn a total of  1,493  from holding Caisse Regionale de or generate 32.41% return on investment over 90 days.

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

Caisse Regionale de  vs.  Ossiam Minimum Variance

Caisse Regionale

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Caisse Regionale de are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Caisse Regionale is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ossiam Minimum Variance

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ossiam Minimum Variance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ossiam Minimum is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Caisse Regionale and Ossiam Minimum

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

The idea behind Caisse Regionale de and Ossiam Minimum Variance 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.