Correlation Between Lery Seafood and Crdit Agricole

Can any of the company-specific risk be diversified away by investing in both Lery Seafood and Crdit 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 Lery Seafood and Crdit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lery Seafood Group and Crdit Agricole SA, you can compare the effects of market volatilities on Lery Seafood and Crdit 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 Lery Seafood with a short position of Crdit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Crdit Agricole.

Diversification Opportunities for Lery Seafood and Crdit Agricole

0.13

Correlation Coefficient

Lery Seafood  Crdit Agricole

Average diversification

The 3 months correlation between Lery and Crdit is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and Crdit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crdit Agricole SA and Lery Seafood 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 Lery Seafood Group are associated (or correlated) with Crdit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crdit Agricole SA has no effect on the direction of Lery Seafood i.e., Lery Seafood and Crdit Agricole go up and down completely randomly.

Pair Corralation between Lery Seafood and Crdit Agricole

Assuming the 90 days horizon Lery Seafood is expected to generate 1.37 times less return on investment than Crdit Agricole. In addition to that, Lery Seafood is 1.11 times more volatile than Crdit Agricole SA. It trades about 0.01 of its total potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.02 per unit of volatility. If you would invest  1,401  in Crdit Agricole SA on October 25, 2024 and sell it today you would earn a total of  16.00  from holding Crdit Agricole SA or generate 1.14% return on investment over 90 days.

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

Lery Seafood Group  vs.  Crdit Agricole SA

Lery Seafood Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lery Seafood Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Lery Seafood is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Crdit Agricole SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Crdit Agricole SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Crdit Agricole is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lery Seafood and Crdit Agricole

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

The idea behind Lery Seafood Group and Crdit Agricole SA 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..