Correlation Between Making Science and Compagnie Generale

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

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

Diversification Opportunities for Making Science and Compagnie Generale

-0.59

Correlation Coefficient

Making Science  Compagnie Generale

Excellent diversification

The 3 months correlation between Making and Compagnie is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Making Science Group and Compagnie Generale des in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Generale des and Making Science 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 Making Science Group are associated (or correlated) with Compagnie Generale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Generale des has no effect on the direction of Making Science i.e., Making Science and Compagnie Generale go up and down completely randomly.

Pair Corralation between Making Science and Compagnie Generale

Assuming the 90 days trading horizon Making Science Group is expected to under-perform the Compagnie Generale. But the stock apears to be less risky and, when comparing its historical volatility, Making Science Group is 1.98 times less risky than Compagnie Generale. The stock trades about -0.03 of its potential returns per unit of risk. The Compagnie Generale des is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2,959  in Compagnie Generale des on April 23, 2025 and sell it today you would earn a total of  280.00  from holding Compagnie Generale des or generate 9.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Making Science Group  vs.  Compagnie Generale des

Making Science Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Making Science Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Making Science is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Compagnie Generale des

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie Generale des are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Compagnie Generale may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Making Science and Compagnie Generale

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

The idea behind Making Science Group and Compagnie Generale des 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 Commodity Directory module to find actively traded commodities issued by global exchanges.