Correlation Between Wiziboat and Credit Agricole

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

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

Diversification Opportunities for Wiziboat and Credit Agricole

0.75

Correlation Coefficient

Wiziboat  Credit Agricole

Poor diversification

The 3 months correlation between Wiziboat and Credit is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Wiziboat SA and Credit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole SA and Wiziboat 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 Wiziboat SA are associated (or correlated) with Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole SA has no effect on the direction of Wiziboat i.e., Wiziboat and Credit Agricole go up and down completely randomly.

Pair Corralation between Wiziboat and Credit Agricole

If you would invest  1,304  in Credit Agricole SA on October 7, 2024 and sell it today you would earn a total of  18.00  from holding Credit Agricole SA or generate 1.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	57.89%
Values	Daily Returns

Wiziboat SA  vs.  Credit Agricole SA

Wiziboat SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wiziboat SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Wiziboat is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Credit Agricole SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Credit Agricole SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Credit Agricole is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Wiziboat and Credit Agricole

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

The idea behind Wiziboat SA and Credit Agricole SA 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.