Correlation Between Caisse Rgionale and Memscap Regpt

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

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

Diversification Opportunities for Caisse Rgionale and Memscap Regpt

-0.38

Correlation Coefficient

Caisse Rgionale  Memscap Regpt

Very good diversification

The 3 months correlation between Caisse and Memscap is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Caisse rgionale de and Memscap Regpt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Memscap Regpt 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 de are associated (or correlated) with Memscap Regpt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Memscap Regpt has no effect on the direction of Caisse Rgionale i.e., Caisse Rgionale and Memscap Regpt go up and down completely randomly.

Pair Corralation between Caisse Rgionale and Memscap Regpt

Assuming the 90 days trading horizon Caisse rgionale de is expected to generate 0.25 times more return on investment than Memscap Regpt. However, Caisse rgionale de is 4.08 times less risky than Memscap Regpt. It trades about 0.18 of its potential returns per unit of risk. Memscap Regpt is currently generating about -0.02 per unit of risk. If you would invest  8,640  in Caisse rgionale de on December 30, 2024 and sell it today you would earn a total of  1,295  from holding Caisse rgionale de or generate 14.99% return on investment over 90 days.

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

Caisse rgionale de  vs.  Memscap Regpt

Caisse rgionale de

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Caisse rgionale de are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Caisse Rgionale sustained solid returns over the last few months and may actually be approaching a breakup point.

Memscap Regpt

Risk-Adjusted Performance

Very Weak

Over the last 90 days Memscap Regpt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Memscap Regpt 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 Memscap Regpt

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

The idea behind Caisse rgionale de and Memscap Regpt 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.