Correlation Between Caisse Rgionale and Ossiam Minimum

Can any of the company-specific risk be diversified away by investing in both Caisse Rgionale 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 Rgionale 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 rgionale de and Ossiam Minimum Variance, you can compare the effects of market volatilities on Caisse Rgionale 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 Rgionale with a short position of Ossiam Minimum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caisse Rgionale and Ossiam Minimum.

Diversification Opportunities for Caisse Rgionale and Ossiam Minimum

0.0

Correlation Coefficient

Caisse Rgionale  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 rgionale 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 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 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 Rgionale i.e., Caisse Rgionale and Ossiam Minimum go up and down completely randomly.

Pair Corralation between Caisse Rgionale and Ossiam Minimum

Assuming the 90 days trading horizon Caisse rgionale de is expected to generate 13.68 times more return on investment than Ossiam Minimum. However, Caisse Rgionale is 13.68 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 0.0 per unit of risk. If you would invest  7,513  in Caisse rgionale de on December 1, 2024 and sell it today you would earn a total of  2,547  from holding Caisse rgionale de or generate 33.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Caisse rgionale de  vs.  Ossiam Minimum Variance

Caisse rgionale de

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Caisse rgionale de are ranked lower than 17 (%) 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.

Ossiam Minimum Variance

Risk-Adjusted Performance

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 latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Caisse Rgionale and Ossiam Minimum

The main advantage of trading using opposite Caisse Rgionale and Ossiam Minimum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caisse Rgionale 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 rgionale 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..