Correlation Between Veolia Environnement and Northstar Clean
Can any of the company-specific risk be diversified away by investing in both Veolia Environnement and Northstar Clean 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 Veolia Environnement and Northstar Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veolia Environnement SA and Northstar Clean Technologies, you can compare the effects of market volatilities on Veolia Environnement and Northstar Clean 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 Veolia Environnement with a short position of Northstar Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veolia Environnement and Northstar Clean.
Diversification Opportunities for Veolia Environnement and Northstar Clean
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Veolia and Northstar is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Veolia Environnement SA and Northstar Clean Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northstar Clean Tech and Veolia Environnement 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 Veolia Environnement SA are associated (or correlated) with Northstar Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northstar Clean Tech has no effect on the direction of Veolia Environnement i.e., Veolia Environnement and Northstar Clean go up and down completely randomly.
Pair Corralation between Veolia Environnement and Northstar Clean
Assuming the 90 days horizon Veolia Environnement SA is expected to generate 0.25 times more return on investment than Northstar Clean. However, Veolia Environnement SA is 4.07 times less risky than Northstar Clean. It trades about 0.02 of its potential returns per unit of risk. Northstar Clean Technologies is currently generating about -0.04 per unit of risk. If you would invest 1,685 in Veolia Environnement SA on September 9, 2025 and sell it today you would earn a total of 16.00 from holding Veolia Environnement SA or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Veolia Environnement SA vs. Northstar Clean Technologies
Performance |
| Timeline |
| Veolia Environnement |
| Northstar Clean Tech |
Veolia Environnement and Northstar Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veolia Environnement and Northstar Clean
The main advantage of trading using opposite Veolia Environnement and Northstar Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veolia Environnement position performs unexpectedly, Northstar Clean 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 Northstar Clean will offset losses from the drop in Northstar Clean's long position.| Veolia Environnement vs. AB SKF | Veolia Environnement vs. Acciona SA | Veolia Environnement vs. Obayashi | Veolia Environnement vs. Keppel Limited |
| Northstar Clean vs. Ecolomondo | Northstar Clean vs. Global Clean Energy | Northstar Clean vs. CHAR Technologies | Northstar Clean vs. Aquarius Engines |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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