Correlation Between SCOR SE and Acheter Louer

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

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

Diversification Opportunities for SCOR SE and Acheter Louer

-0.77

Correlation Coefficient

SCOR SE  Acheter Louer

Pay attention - limited upside

The 3 months correlation between SCOR and Acheter is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding SCOR SE and Acheter Louer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acheter Louer and SCOR SE 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 SCOR SE are associated (or correlated) with Acheter Louer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acheter Louer has no effect on the direction of SCOR SE i.e., SCOR SE and Acheter Louer go up and down completely randomly.

Pair Corralation between SCOR SE and Acheter Louer

Assuming the 90 days trading horizon SCOR SE is expected to generate 0.09 times more return on investment than Acheter Louer. However, SCOR SE is 11.21 times less risky than Acheter Louer. It trades about 0.11 of its potential returns per unit of risk. Acheter Louer is currently generating about -0.36 per unit of risk. If you would invest  2,386  in SCOR SE on November 20, 2024 and sell it today you would earn a total of  220.00  from holding SCOR SE or generate 9.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

SCOR SE  vs.  Acheter Louer

SCOR SE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SCOR SE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, SCOR SE may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Acheter Louer

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acheter Louer has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with SCOR SE and Acheter Louer

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

The idea behind SCOR SE and Acheter Louer 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.