Correlation Between Veolia Environnement and Semco Technologies

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

By analyzing existing cross correlation between Veolia Environnement VE and Semco Technologies Sas, you can compare the effects of market volatilities on Veolia Environnement and Semco Technologies 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 Veolia Environnement with a short position of Semco Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veolia Environnement and Semco Technologies.

Diversification Opportunities for Veolia Environnement and Semco Technologies

0.17

Correlation Coefficient

Veolia Environnement  Semco Technologies

Average diversification

The 3 months correlation between Veolia and Semco is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Veolia Environnement VE and Semco Technologies Sas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semco Technologies Sas and Veolia Environnement 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 Veolia Environnement VE are associated (or correlated) with Semco Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semco Technologies Sas has no effect on the direction of Veolia Environnement i.e., Veolia Environnement and Semco Technologies go up and down completely randomly.

Pair Corralation between Veolia Environnement and Semco Technologies

Assuming the 90 days trading horizon Veolia Environnement VE is expected to generate 0.28 times more return on investment than Semco Technologies. However, Veolia Environnement VE is 3.54 times less risky than Semco Technologies. It trades about 0.03 of its potential returns per unit of risk. Semco Technologies Sas is currently generating about -0.23 per unit of risk. If you would invest  3,017  in Veolia Environnement VE on April 25, 2025 and sell it today you would earn a total of  45.00  from holding Veolia Environnement VE or generate 1.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	17.46%
Values	Daily Returns

Veolia Environnement VE  vs.  Semco Technologies Sas

Veolia Environnement

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Veolia Environnement VE are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Veolia Environnement is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Semco Technologies Sas

Risk-Adjusted Performance

Very Weak

Over the last 90 days Semco Technologies Sas has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Veolia Environnement and Semco Technologies

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

The idea behind Veolia Environnement VE and Semco Technologies Sas 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .