Correlation Between HIGHTECH PAYMENT and CREDIT IMMOBILIER

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

By analyzing existing cross correlation between HIGHTECH PAYMENT SYSTEMS and CREDIT IMMOBILIER ET, you can compare the effects of market volatilities on HIGHTECH PAYMENT and CREDIT IMMOBILIER 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 HIGHTECH PAYMENT with a short position of CREDIT IMMOBILIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIGHTECH PAYMENT and CREDIT IMMOBILIER.

Diversification Opportunities for HIGHTECH PAYMENT and CREDIT IMMOBILIER

-0.25

Correlation Coefficient

HIGHTECH PAYMENT  CREDIT IMMOBILIER

Very good diversification

The 3 months correlation between HIGHTECH and CREDIT is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding HIGHTECH PAYMENT SYSTEMS and CREDIT IMMOBILIER ET in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT IMMOBILIER and HIGHTECH PAYMENT 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 HIGHTECH PAYMENT SYSTEMS are associated (or correlated) with CREDIT IMMOBILIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT IMMOBILIER has no effect on the direction of HIGHTECH PAYMENT i.e., HIGHTECH PAYMENT and CREDIT IMMOBILIER go up and down completely randomly.

Pair Corralation between HIGHTECH PAYMENT and CREDIT IMMOBILIER

Assuming the 90 days trading horizon HIGHTECH PAYMENT SYSTEMS is expected to under-perform the CREDIT IMMOBILIER. But the stock apears to be less risky and, when comparing its historical volatility, HIGHTECH PAYMENT SYSTEMS is 1.09 times less risky than CREDIT IMMOBILIER. The stock trades about -0.08 of its potential returns per unit of risk. The CREDIT IMMOBILIER ET is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  40,055  in CREDIT IMMOBILIER ET on September 5, 2024 and sell it today you would earn a total of  945.00  from holding CREDIT IMMOBILIER ET or generate 2.36% return on investment over 90 days.

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

HIGHTECH PAYMENT SYSTEMS  vs.  CREDIT IMMOBILIER ET

HIGHTECH PAYMENT SYSTEMS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HIGHTECH PAYMENT SYSTEMS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

CREDIT IMMOBILIER

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CREDIT IMMOBILIER ET are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, CREDIT IMMOBILIER is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with HIGHTECH PAYMENT and CREDIT IMMOBILIER

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

The idea behind HIGHTECH PAYMENT SYSTEMS and CREDIT IMMOBILIER ET 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..