Correlation Between JCDecaux and Strer SE
Can any of the company-specific risk be diversified away by investing in both JCDecaux and Strer SE 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 JCDecaux and Strer SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JCDecaux SA and Strer SE Co, you can compare the effects of market volatilities on JCDecaux and Strer SE 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 JCDecaux with a short position of Strer SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCDecaux and Strer SE.
Diversification Opportunities for JCDecaux and Strer SE
Almost no diversification
The 3 months correlation between JCDecaux and Strer is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding JCDecaux SA and Strer SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strer SE and JCDecaux 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 JCDecaux SA are associated (or correlated) with Strer SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strer SE has no effect on the direction of JCDecaux i.e., JCDecaux and Strer SE go up and down completely randomly.
Pair Corralation between JCDecaux and Strer SE
Assuming the 90 days horizon JCDecaux SA is expected to under-perform the Strer SE. In addition to that, JCDecaux is 1.48 times more volatile than Strer SE Co. It trades about -0.01 of its total potential returns per unit of risk. Strer SE Co is currently generating about 0.03 per unit of volatility. If you would invest 4,030 in Strer SE Co on September 24, 2024 and sell it today you would earn a total of 606.00 from holding Strer SE Co or generate 15.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
JCDecaux SA vs. Strer SE Co
Performance |
Timeline |
JCDecaux SA |
Strer SE |
JCDecaux and Strer SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JCDecaux and Strer SE
The main advantage of trading using opposite JCDecaux and Strer SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCDecaux position performs unexpectedly, Strer SE 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 Strer SE will offset losses from the drop in Strer SE's long position.JCDecaux vs. Publicis Groupe SA | JCDecaux vs. Omnicom Group | JCDecaux vs. WPP PLC | JCDecaux vs. WPP PLC ADR |
Strer SE vs. Publicis Groupe SA | Strer SE vs. Omnicom Group | Strer SE vs. WPP PLC | Strer SE vs. WPP PLC ADR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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