Correlation Between Mtropole Tlvision and NRJ

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

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

Diversification Opportunities for Mtropole Tlvision and NRJ

0.0

Correlation Coefficient

Mtropole Tlvision  NRJ

Pay attention - limited upside

The 3 months correlation between Mtropole and NRJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mtropole Tlvision SA and NRJ Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRJ Group and Mtropole Tlvision 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 Mtropole Tlvision SA are associated (or correlated) with NRJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRJ Group has no effect on the direction of Mtropole Tlvision i.e., Mtropole Tlvision and NRJ go up and down completely randomly.

Pair Corralation between Mtropole Tlvision and NRJ

If you would invest (100.00) in NRJ Group on September 12, 2024 and sell it today you would earn a total of  100.00  from holding NRJ Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mtropole Tlvision SA  vs.  NRJ Group

Mtropole Tlvision

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mtropole Tlvision SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

NRJ Group

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Mtropole Tlvision and NRJ

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

The idea behind Mtropole Tlvision SA and NRJ Group 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.