Correlation Between Coil SANV and Compagnie
Can any of the company-specific risk be diversified away by investing in both Coil SANV and Compagnie 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 Coil SANV and Compagnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coil SANV and Compagnie de lOdet, you can compare the effects of market volatilities on Coil SANV and Compagnie 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 Coil SANV with a short position of Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coil SANV and Compagnie.
Diversification Opportunities for Coil SANV and Compagnie
Poor diversification
The 3 months correlation between Coil and Compagnie is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Coil SANV and Compagnie de lOdet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de lOdet and Coil SANV 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 Coil SANV are associated (or correlated) with Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de lOdet has no effect on the direction of Coil SANV i.e., Coil SANV and Compagnie go up and down completely randomly.
Pair Corralation between Coil SANV and Compagnie
Assuming the 90 days trading horizon Coil SANV is expected to under-perform the Compagnie. In addition to that, Coil SANV is 1.7 times more volatile than Compagnie de lOdet. It trades about -0.12 of its total potential returns per unit of risk. Compagnie de lOdet is currently generating about -0.1 per unit of volatility. If you would invest 145,000 in Compagnie de lOdet on September 10, 2025 and sell it today you would lose (11,200) from holding Compagnie de lOdet or give up 7.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coil SANV vs. Compagnie de lOdet
Performance |
| Timeline |
| Coil SANV |
| Compagnie de lOdet |
Coil SANV and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coil SANV and Compagnie
The main advantage of trading using opposite Coil SANV and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coil SANV position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie's long position.| Coil SANV vs. Florentaise SA | Coil SANV vs. Parx Plastics NV | Coil SANV vs. Eo2 Socit Anonyme | Coil SANV vs. Encres Dubuit SA |
| Compagnie vs. Nexans SA | Compagnie vs. Elis SA | Compagnie vs. Compagnie du Cambodge | Compagnie vs. Sodexo SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stocks Directory Find actively traded stocks across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |