Correlation Between Ossiam Minimum and Caisse Regionale

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

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

Diversification Opportunities for Ossiam Minimum and Caisse Regionale

0.0

Correlation Coefficient

Ossiam Minimum  Caisse Regionale

Pay attention - limited upside

The 3 months correlation between Ossiam and Caisse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ossiam Minimum Variance and Caisse Regionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Regionale and Ossiam Minimum 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 Ossiam Minimum Variance 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 Ossiam Minimum i.e., Ossiam Minimum and Caisse Regionale go up and down completely randomly.

Pair Corralation between Ossiam Minimum and Caisse Regionale

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	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Ossiam Minimum Variance  vs.  Caisse Regionale de

Ossiam Minimum Variance

Risk-Adjusted Performance

Very Weak

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

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 Ossiam Minimum and Caisse Regionale

The main advantage of trading using opposite Ossiam Minimum and Caisse Regionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam Minimum 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 Ossiam Minimum Variance 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.