Correlation Between Vivendi SA and Artesian Resources

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

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

Diversification Opportunities for Vivendi SA and Artesian Resources

0.0

Correlation Coefficient

Vivendi SA  Artesian Resources

Pay attention - limited upside

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

Pair Corralation between Vivendi SA and Artesian Resources

If you would invest  3,129  in Artesian Resources on December 30, 2024 and sell it today you would earn a total of  138.00  from holding Artesian Resources or generate 4.41% return on investment over 90 days.

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

Vivendi SA PK  vs.  Artesian Resources

Vivendi SA PK

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vivendi SA PK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Vivendi SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Artesian Resources

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Artesian Resources are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Artesian Resources is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vivendi SA and Artesian Resources

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

The idea behind Vivendi SA PK and Artesian Resources 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.