Correlation Between 360 Finance and CREDIT AGRICOLE

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Can any of the company-specific risk be diversified away by investing in both 360 Finance 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 360 Finance and CREDIT AGRICOLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 360 Finance and CREDIT AGRICOLE, you can compare the effects of market volatilities on 360 Finance 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 360 Finance with a short position of CREDIT AGRICOLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Finance and CREDIT AGRICOLE.

Diversification Opportunities for 360 Finance and CREDIT AGRICOLE

-0.55
  Correlation Coefficient

Excellent diversification

The 3 months correlation between 360 and CREDIT is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance and CREDIT AGRICOLE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT AGRICOLE and 360 Finance 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 360 Finance 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 has no effect on the direction of 360 Finance i.e., 360 Finance and CREDIT AGRICOLE go up and down completely randomly.

Pair Corralation between 360 Finance and CREDIT AGRICOLE

Given the investment horizon of 90 days 360 Finance is expected to generate 2.33 times more return on investment than CREDIT AGRICOLE. However, 360 Finance is 2.33 times more volatile than CREDIT AGRICOLE. It trades about 0.06 of its potential returns per unit of risk. CREDIT AGRICOLE is currently generating about 0.07 per unit of risk. If you would invest  2,091  in 360 Finance on October 4, 2024 and sell it today you would earn a total of  1,762  from holding 360 Finance or generate 84.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy99.0%
ValuesDaily Returns

360 Finance  vs.  CREDIT AGRICOLE

 Performance 
       Timeline  
360 Finance 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in 360 Finance are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, 360 Finance displayed solid returns over the last few months and may actually be approaching a breakup point.
CREDIT AGRICOLE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CREDIT AGRICOLE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CREDIT AGRICOLE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

360 Finance and CREDIT AGRICOLE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 360 Finance and CREDIT AGRICOLE

The main advantage of trading using opposite 360 Finance and CREDIT AGRICOLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Finance 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 360 Finance and CREDIT AGRICOLE 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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