Correlation Between Compagnie and SCOR SE

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

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

Diversification Opportunities for Compagnie and SCOR SE

0.0

Correlation Coefficient

Compagnie  SCOR SE

Pay attention - limited upside

The 3 months correlation between Compagnie and SCOR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie de Chemins and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE and Compagnie 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 Compagnie de Chemins are associated (or correlated) with SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of Compagnie i.e., Compagnie and SCOR SE go up and down completely randomly.

Pair Corralation between Compagnie and SCOR SE

If you would invest  2,406  in SCOR SE on April 21, 2025 and sell it today you would earn a total of  500.00  from holding SCOR SE or generate 20.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Compagnie de Chemins  vs.  SCOR SE

Compagnie de Chemins

Risk-Adjusted Performance

Very Weak

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

SCOR SE

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SCOR SE are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, SCOR SE sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Compagnie and SCOR SE

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

The idea behind Compagnie de Chemins and SCOR SE 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.

Check out your portfolio center.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.