Correlation Between Hitechpros and Compagnie Industrielle

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

By analyzing existing cross correlation between Hitechpros and Compagnie Industrielle et, you can compare the effects of market volatilities on Hitechpros and Compagnie Industrielle 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 Hitechpros with a short position of Compagnie Industrielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitechpros and Compagnie Industrielle.

Diversification Opportunities for Hitechpros and Compagnie Industrielle

0.74

Correlation Coefficient

Hitechpros  Compagnie Industrielle

Poor diversification

The 3 months correlation between Hitechpros and Compagnie is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hitechpros and Compagnie Industrielle et in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Industrielle and Hitechpros 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 Hitechpros are associated (or correlated) with Compagnie Industrielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Industrielle has no effect on the direction of Hitechpros i.e., Hitechpros and Compagnie Industrielle go up and down completely randomly.

Pair Corralation between Hitechpros and Compagnie Industrielle

Assuming the 90 days trading horizon Hitechpros is expected to generate 3.42 times less return on investment than Compagnie Industrielle. But when comparing it to its historical volatility, Hitechpros is 3.47 times less risky than Compagnie Industrielle. It trades about 0.09 of its potential returns per unit of risk. Compagnie Industrielle et is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  5,700  in Compagnie Industrielle et on April 24, 2025 and sell it today you would earn a total of  1,400  from holding Compagnie Industrielle et or generate 24.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Hitechpros  vs.  Compagnie Industrielle et

Hitechpros

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hitechpros are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Hitechpros may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Compagnie Industrielle

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie Industrielle et are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Compagnie Industrielle sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hitechpros and Compagnie Industrielle

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

The idea behind Hitechpros and Compagnie Industrielle et 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.