Correlation Between Ekinops SA and Caisse Regionale

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

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

Diversification Opportunities for Ekinops SA and Caisse Regionale

0.36

Correlation Coefficient

Ekinops SA  Caisse Regionale

Weak diversification

The 3 months correlation between Ekinops and Caisse is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Caisse Regionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Regionale and Ekinops SA 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 Ekinops SA 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 Ekinops SA i.e., Ekinops SA and Caisse Regionale go up and down completely randomly.

Pair Corralation between Ekinops SA and Caisse Regionale

Assuming the 90 days trading horizon Ekinops SA is expected to generate 2.3 times less return on investment than Caisse Regionale. In addition to that, Ekinops SA is 2.14 times more volatile than Caisse Regionale de. It trades about 0.04 of its total potential returns per unit of risk. Caisse Regionale de is currently generating about 0.21 per unit of volatility. If you would invest  1,870  in Caisse Regionale de on December 30, 2024 and sell it today you would earn a total of  325.00  from holding Caisse Regionale de or generate 17.38% return on investment over 90 days.

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

Ekinops SA  vs.  Caisse Regionale de

Ekinops SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ekinops SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Ekinops SA may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Caisse Regionale

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Caisse Regionale de are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Caisse Regionale reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ekinops SA and Caisse Regionale

The main advantage of trading using opposite Ekinops SA and Caisse Regionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA 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 Ekinops SA 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.