Correlation Between Clasquin and Bastide Le
Can any of the company-specific risk be diversified away by investing in both Clasquin and Bastide Le 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 Clasquin and Bastide Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clasquin and Bastide Le Confort, you can compare the effects of market volatilities on Clasquin and Bastide Le 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 Clasquin with a short position of Bastide Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clasquin and Bastide Le.
Diversification Opportunities for Clasquin and Bastide Le
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Clasquin and Bastide is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Clasquin and Bastide Le Confort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bastide Le Confort and Clasquin 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 Clasquin are associated (or correlated) with Bastide Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bastide Le Confort has no effect on the direction of Clasquin i.e., Clasquin and Bastide Le go up and down completely randomly.
Pair Corralation between Clasquin and Bastide Le
Assuming the 90 days trading horizon Clasquin is expected to generate 37.62 times less return on investment than Bastide Le. But when comparing it to its historical volatility, Clasquin is 27.16 times less risky than Bastide Le. It trades about 0.16 of its potential returns per unit of risk. Bastide Le Confort is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Bastide Le Confort on September 1, 2024 and sell it today you would earn a total of 280.00 from holding Bastide Le Confort or generate 15.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Clasquin vs. Bastide Le Confort
Performance |
| Timeline |
| Clasquin |
| Bastide Le Confort |
Clasquin and Bastide Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clasquin and Bastide Le
The main advantage of trading using opposite Clasquin and Bastide Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clasquin position performs unexpectedly, Bastide Le 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 Bastide Le will offset losses from the drop in Bastide Le's long position.The idea behind Clasquin and Bastide Le Confort 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.| Bastide Le vs. LNA Sante SA | Bastide Le vs. Chargeurs SA | Bastide Le vs. Trigano SA | Bastide Le vs. Boiron SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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