Correlation Between Intelligent Living and Compagnie

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

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

Diversification Opportunities for Intelligent Living and Compagnie

-0.42

Correlation Coefficient

Intelligent Living  Compagnie

Very good diversification

The 3 months correlation between Intelligent and Compagnie is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Living Application and Compagnie de Saint Gobain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de Saint and Intelligent Living 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 Intelligent Living Application are associated (or correlated) with Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de Saint has no effect on the direction of Intelligent Living i.e., Intelligent Living and Compagnie go up and down completely randomly.

Pair Corralation between Intelligent Living and Compagnie

Given the investment horizon of 90 days Intelligent Living Application is expected to generate 6.01 times more return on investment than Compagnie. However, Intelligent Living is 6.01 times more volatile than Compagnie de Saint Gobain. It trades about 0.06 of its potential returns per unit of risk. Compagnie de Saint Gobain is currently generating about -0.12 per unit of risk. If you would invest  49.00  in Intelligent Living Application on July 23, 2025 and sell it today you would earn a total of  8.00  from holding Intelligent Living Application or generate 16.33% return on investment over 90 days.

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

Intelligent Living Application  vs.  Compagnie de Saint Gobain

Intelligent Living

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Living Application are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Intelligent Living reported solid returns over the last few months and may actually be approaching a breakup point.

Compagnie de Saint

Risk-Adjusted Performance

Weakest

Over the last 90 days Compagnie de Saint Gobain has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Intelligent Living and Compagnie

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

The idea behind Intelligent Living Application and Compagnie de Saint Gobain 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.