Correlation Between Colas SA and SCOR SE
Can any of the company-specific risk be diversified away by investing in both Colas SA and SCOR SE 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 Colas SA and SCOR SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colas SA and SCOR SE, you can compare the effects of market volatilities on Colas SA and SCOR SE 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 Colas SA with a short position of SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colas SA and SCOR SE.
Diversification Opportunities for Colas SA and SCOR SE
Pay attention - limited upside
The 3 months correlation between Colas and SCOR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Colas SA and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE and Colas SA 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 Colas SA are associated (or correlated) with SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of Colas SA i.e., Colas SA and SCOR SE go up and down completely randomly.
Pair Corralation between Colas SA and SCOR SE
If you would invest 2,340 in SCOR SE on December 18, 2024 and sell it today you would earn a total of 175.00 from holding SCOR SE or generate 7.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Colas SA vs. SCOR SE
Performance |
Timeline |
Colas SA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SCOR SE |
Colas SA and SCOR SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Colas SA and SCOR SE
The main advantage of trading using opposite Colas SA and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colas SA position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.Colas SA vs. Reinsurance Group of | Colas SA vs. Siriuspoint | Colas SA vs. RenaissanceRe Holdings | Colas SA vs. Maiden Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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