Correlation Between Caisse Rgionale and Caisse Regionale

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

By analyzing existing cross correlation between Caisse Rgionale du and Caisse Regionale de, you can compare the effects of market volatilities on Caisse Rgionale and Caisse Regionale 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 Caisse Regionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caisse Rgionale and Caisse Regionale.

Diversification Opportunities for Caisse Rgionale and Caisse Regionale

0.94

Correlation Coefficient

Caisse Rgionale  Caisse Regionale

Almost no diversification

The 3 months correlation between Caisse and Caisse is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Caisse Rgionale du and Caisse Regionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Regionale 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 du are associated (or correlated) with Caisse Regionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse Regionale has no effect on the direction of Caisse Rgionale i.e., Caisse Rgionale and Caisse Regionale go up and down completely randomly.

Pair Corralation between Caisse Rgionale and Caisse Regionale

Assuming the 90 days trading horizon Caisse Rgionale is expected to generate 1.64 times less return on investment than Caisse Regionale. But when comparing it to its historical volatility, Caisse Rgionale du is 1.23 times less risky than Caisse Regionale. It trades about 0.04 of its potential returns per unit of risk. Caisse Regionale de is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  5,901  in Caisse Regionale de on September 3, 2024 and sell it today you would earn a total of  209.00  from holding Caisse Regionale de or generate 3.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Caisse Rgionale du  vs.  Caisse Regionale de

Caisse Rgionale du

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Caisse Rgionale du are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Caisse Rgionale is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Caisse Rgionale and Caisse Regionale

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

The idea behind Caisse Rgionale du and Caisse Regionale de 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.