Correlation Between Carmat SA and Link Real

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

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

Diversification Opportunities for Carmat SA and Link Real

-0.59

Correlation Coefficient

Carmat SA  Link Real

Excellent diversification

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

Pair Corralation between Carmat SA and Link Real

Assuming the 90 days horizon Carmat SA is expected to under-perform the Link Real. In addition to that, Carmat SA is 9.56 times more volatile than Link Real Estate. It trades about -0.05 of its total potential returns per unit of risk. Link Real Estate is currently generating about 0.18 per unit of volatility. If you would invest  389.00  in Link Real Estate on April 24, 2025 and sell it today you would earn a total of  79.00  from holding Link Real Estate or generate 20.31% return on investment over 90 days.

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

Carmat SA  vs.  Link Real Estate

Carmat SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Carmat SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Link Real Estate

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Link Real Estate are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Link Real reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Carmat SA and Link Real

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

The idea behind Carmat SA and Link Real Estate 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.