Correlation Between Artea SA and Stradim Espace

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

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

Diversification Opportunities for Artea SA and Stradim Espace

0.37

Correlation Coefficient

Artea SA  Stradim Espace

Weak diversification

The 3 months correlation between Artea and Stradim is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Artea SA and Stradim Espace Finances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stradim Espace Finances and Artea SA 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 Artea SA are associated (or correlated) with Stradim Espace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stradim Espace Finances has no effect on the direction of Artea SA i.e., Artea SA and Stradim Espace go up and down completely randomly.

Pair Corralation between Artea SA and Stradim Espace

Assuming the 90 days trading horizon Artea SA is expected to generate 5.01 times less return on investment than Stradim Espace. But when comparing it to its historical volatility, Artea SA is 2.59 times less risky than Stradim Espace. It trades about 0.06 of its potential returns per unit of risk. Stradim Espace Finances is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  430.00  in Stradim Espace Finances on April 24, 2025 and sell it today you would earn a total of  215.00  from holding Stradim Espace Finances or generate 50.0% return on investment over 90 days.

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

Artea SA  vs.  Stradim Espace Finances

Artea SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Artea SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Artea SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Stradim Espace Finances

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stradim Espace Finances are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Stradim Espace reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Artea SA and Stradim Espace

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

The idea behind Artea SA and Stradim Espace Finances 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.