Correlation Between Cybergun and Voyageurs

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

By analyzing existing cross correlation between Cybergun SA and Voyageurs du Monde, you can compare the effects of market volatilities on Cybergun and Voyageurs 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 Cybergun with a short position of Voyageurs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cybergun and Voyageurs.

Diversification Opportunities for Cybergun and Voyageurs

0.88

Correlation Coefficient

Cybergun  Voyageurs

Very poor diversification

The 3 months correlation between Cybergun and Voyageurs is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cybergun SA and Voyageurs du Monde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voyageurs du Monde and Cybergun 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 Cybergun SA are associated (or correlated) with Voyageurs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voyageurs du Monde has no effect on the direction of Cybergun i.e., Cybergun and Voyageurs go up and down completely randomly.

Pair Corralation between Cybergun and Voyageurs

Assuming the 90 days trading horizon Cybergun SA is expected to generate 18.07 times more return on investment than Voyageurs. However, Cybergun is 18.07 times more volatile than Voyageurs du Monde. It trades about 0.15 of its potential returns per unit of risk. Voyageurs du Monde is currently generating about 0.29 per unit of risk. If you would invest  0.02  in Cybergun SA on April 25, 2025 and sell it today you would earn a total of  0.03  from holding Cybergun SA or generate 150.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Cybergun SA  vs.  Voyageurs du Monde

Cybergun SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cybergun SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Cybergun reported solid returns over the last few months and may actually be approaching a breakup point.

Voyageurs du Monde

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voyageurs du Monde are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Voyageurs reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cybergun and Voyageurs

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

The idea behind Cybergun SA and Voyageurs du Monde 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.