Correlation Between Semco Technologies and Eutelsat Communications
Can any of the company-specific risk be diversified away by investing in both Semco Technologies and Eutelsat Communications 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 Semco Technologies and Eutelsat Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semco Technologies Sas and Eutelsat Communications SA, you can compare the effects of market volatilities on Semco Technologies and Eutelsat Communications 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 Semco Technologies with a short position of Eutelsat Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semco Technologies and Eutelsat Communications.
Diversification Opportunities for Semco Technologies and Eutelsat Communications
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Semco and Eutelsat is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Semco Technologies Sas and Eutelsat Communications SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eutelsat Communications and Semco Technologies 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 Semco Technologies Sas are associated (or correlated) with Eutelsat Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eutelsat Communications has no effect on the direction of Semco Technologies i.e., Semco Technologies and Eutelsat Communications go up and down completely randomly.
Pair Corralation between Semco Technologies and Eutelsat Communications
Assuming the 90 days trading horizon Semco Technologies Sas is expected to generate 0.69 times more return on investment than Eutelsat Communications. However, Semco Technologies Sas is 1.44 times less risky than Eutelsat Communications. It trades about 0.03 of its potential returns per unit of risk. Eutelsat Communications SA is currently generating about 0.0 per unit of risk. If you would invest 2,479 in Semco Technologies Sas on September 8, 2025 and sell it today you would earn a total of 54.00 from holding Semco Technologies Sas or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semco Technologies Sas vs. Eutelsat Communications SA
Performance |
| Timeline |
| Semco Technologies Sas |
| Eutelsat Communications |
Semco Technologies and Eutelsat Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semco Technologies and Eutelsat Communications
The main advantage of trading using opposite Semco Technologies and Eutelsat Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semco Technologies position performs unexpectedly, Eutelsat Communications 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 Eutelsat Communications will offset losses from the drop in Eutelsat Communications' long position.| Semco Technologies vs. LVMH Mot Hennessy | Semco Technologies vs. Hermes International SCA | Semco Technologies vs. Amundi Index Solutions | Semco Technologies vs. Manitou BF SA |
| Eutelsat Communications vs. BNP Paribas SA | Eutelsat Communications vs. Credit Agricole SA | Eutelsat Communications vs. Societe Generale SA | Eutelsat Communications vs. AXA 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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