Correlation Between Seche Environnement and EVRAZ Plc

Can any of the company-specific risk be diversified away by investing in both Seche Environnement and EVRAZ Plc 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 Seche Environnement and EVRAZ Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Seche Environnement SA and EVRAZ plc, you can compare the effects of market volatilities on Seche Environnement and EVRAZ Plc 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 Seche Environnement with a short position of EVRAZ Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seche Environnement and EVRAZ Plc.

Diversification Opportunities for Seche Environnement and EVRAZ Plc

0.0

Correlation Coefficient

Seche Environnement  EVRAZ Plc

Pay attention - limited upside

The 3 months correlation between Seche and EVRAZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Seche Environnement SA and EVRAZ plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVRAZ plc and Seche 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 Seche Environnement SA are associated (or correlated) with EVRAZ Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVRAZ plc has no effect on the direction of Seche Environnement i.e., Seche Environnement and EVRAZ Plc go up and down completely randomly.

Pair Corralation between Seche Environnement and EVRAZ Plc

If you would invest  7,819  in Seche Environnement SA on April 24, 2025 and sell it today you would earn a total of  2,481  from holding Seche Environnement SA or generate 31.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Seche Environnement SA  vs.  EVRAZ plc

Seche Environnement

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Seche Environnement SA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Seche Environnement unveiled solid returns over the last few months and may actually be approaching a breakup point.

EVRAZ plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days EVRAZ plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, EVRAZ Plc is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Seche Environnement and EVRAZ Plc

The main advantage of trading using opposite Seche Environnement and EVRAZ Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seche Environnement position performs unexpectedly, EVRAZ Plc 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 EVRAZ Plc will offset losses from the drop in EVRAZ Plc's long position.

The idea behind Seche Environnement SA and EVRAZ plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.