Correlation Between Compagnie Plastic and Strainsforpains
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and Strainsforpains 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 Strainsforpains 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 Strainsforpains, you can compare the effects of market volatilities on Compagnie Plastic and Strainsforpains 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 Strainsforpains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Strainsforpains.
Diversification Opportunities for Compagnie Plastic and Strainsforpains
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compagnie and Strainsforpains is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and Strainsforpains in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strainsforpains 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 Strainsforpains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strainsforpains has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and Strainsforpains go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Strainsforpains
Assuming the 90 days horizon Compagnie Plastic Omnium is expected to generate 14.51 times more return on investment than Strainsforpains. However, Compagnie Plastic is 14.51 times more volatile than Strainsforpains. It trades about 0.12 of its potential returns per unit of risk. Strainsforpains is currently generating about 0.13 per unit of risk. If you would invest 950.00 in Compagnie Plastic Omnium on September 10, 2025 and sell it today you would earn a total of 868.00 from holding Compagnie Plastic Omnium or generate 91.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Strainsforpains
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Strainsforpains |
Compagnie Plastic and Strainsforpains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Strainsforpains
The main advantage of trading using opposite Compagnie Plastic and Strainsforpains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, Strainsforpains 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 Strainsforpains will offset losses from the drop in Strainsforpains' long position.| Compagnie Plastic vs. Gt Legend Automotive | Compagnie Plastic vs. Agristar | Compagnie Plastic vs. Lmp Automotive Holdings | Compagnie Plastic vs. Esports Entertainment Group |
| Strainsforpains vs. BP PLC ADR | Strainsforpains vs. Shell PLC ADR | Strainsforpains vs. Petroleo Brasileiro Petrobras | Strainsforpains vs. Suncor Energy |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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