Correlation Between Compagnie Plastic and Vitec Holdings
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and Vitec Holdings 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 Compagnie Plastic and Vitec Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Plastic Omnium and Vitec Holdings Co, you can compare the effects of market volatilities on Compagnie Plastic and Vitec Holdings 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 Compagnie Plastic with a short position of Vitec Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Vitec Holdings.
Diversification Opportunities for Compagnie Plastic and Vitec Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compagnie and Vitec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and Vitec Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitec Holdings and Compagnie Plastic 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 Compagnie Plastic Omnium are associated (or correlated) with Vitec Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitec Holdings has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and Vitec Holdings go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Vitec Holdings
If you would invest 1,146 in Compagnie Plastic Omnium on June 12, 2025 and sell it today you would earn a total of 150.00 from holding Compagnie Plastic Omnium or generate 13.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Vitec Holdings Co
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Vitec Holdings |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Compagnie Plastic and Vitec Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Vitec Holdings
The main advantage of trading using opposite Compagnie Plastic and Vitec Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, Vitec Holdings 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 Vitec Holdings will offset losses from the drop in Vitec Holdings' long position.| Compagnie Plastic vs. APPLIED MATERIALS | Compagnie Plastic vs. EAGLE MATERIALS | Compagnie Plastic vs. Altech Advanced Materials | Compagnie Plastic vs. NetSol Technologies |
| Vitec Holdings vs. MAROC TELECOM | Vitec Holdings vs. Sims Metal Management | Vitec Holdings vs. Highlight Communications AG | Vitec Holdings vs. Brockhaus Capital Management |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |