Correlation Between Compagnie and Antelope Enterprise

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

By analyzing existing cross correlation between Compagnie de Saint Gobain and Antelope Enterprise Holdings, you can compare the effects of market volatilities on Compagnie and Antelope Enterprise 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 Compagnie with a short position of Antelope Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie and Antelope Enterprise.

Diversification Opportunities for Compagnie and Antelope Enterprise

-0.76

Correlation Coefficient

Compagnie  Antelope Enterprise

Pay attention - limited upside

The 3 months correlation between Compagnie and Antelope is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie de Saint Gobain and Antelope Enterprise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise and Compagnie 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 Compagnie de Saint Gobain are associated (or correlated) with Antelope Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antelope Enterprise has no effect on the direction of Compagnie i.e., Compagnie and Antelope Enterprise go up and down completely randomly.

Pair Corralation between Compagnie and Antelope Enterprise

Assuming the 90 days horizon Compagnie de Saint Gobain is expected to generate 0.35 times more return on investment than Antelope Enterprise. However, Compagnie de Saint Gobain is 2.86 times less risky than Antelope Enterprise. It trades about 0.08 of its potential returns per unit of risk. Antelope Enterprise Holdings is currently generating about -0.05 per unit of risk. If you would invest  4,529  in Compagnie de Saint Gobain on September 5, 2024 and sell it today you would earn a total of  4,931  from holding Compagnie de Saint Gobain or generate 108.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	78.95%
Values	Daily Returns

Compagnie de Saint Gobain  vs.  Antelope Enterprise Holdings

Compagnie de Saint

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie de Saint Gobain are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Compagnie may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Antelope Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Antelope Enterprise Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Compagnie and Antelope Enterprise

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

The idea behind Compagnie de Saint Gobain and Antelope Enterprise Holdings 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.