Correlation Between Experian Plc and Legrand SA
Can any of the company-specific risk be diversified away by investing in both Experian Plc and Legrand SA 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 Experian Plc and Legrand SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Experian plc PK and Legrand SA, you can compare the effects of market volatilities on Experian Plc and Legrand SA 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 Experian Plc with a short position of Legrand SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Experian Plc and Legrand SA.
Diversification Opportunities for Experian Plc and Legrand SA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Experian and Legrand is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Experian plc PK and Legrand SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legrand SA and Experian Plc 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 Experian plc PK are associated (or correlated) with Legrand SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legrand SA has no effect on the direction of Experian Plc i.e., Experian Plc and Legrand SA go up and down completely randomly.
Pair Corralation between Experian Plc and Legrand SA
Assuming the 90 days horizon Experian plc PK is expected to under-perform the Legrand SA. But the otc stock apears to be less risky and, when comparing its historical volatility, Experian plc PK is 1.59 times less risky than Legrand SA. The otc stock trades about -0.18 of its potential returns per unit of risk. The Legrand SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 15,100 in Legrand SA on August 15, 2025 and sell it today you would earn a total of 163.00 from holding Legrand SA or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Experian plc PK vs. Legrand SA
Performance |
| Timeline |
| Experian plc PK |
| Legrand SA |
Experian Plc and Legrand SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Experian Plc and Legrand SA
The main advantage of trading using opposite Experian Plc and Legrand SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Experian Plc position performs unexpectedly, Legrand SA 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 Legrand SA will offset losses from the drop in Legrand SA's long position.| Experian Plc vs. Assa Abloy AB | Experian Plc vs. Legrand SA | Experian Plc vs. Aena SME SA | Experian Plc vs. Citic Ltd ADR |
| Legrand SA vs. Assa Abloy AB | Legrand SA vs. Experian PLC | Legrand SA vs. Experian plc PK | Legrand SA vs. Aena SME 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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