Correlation Between Entech SE and BEBO Health
Can any of the company-specific risk be diversified away by investing in both Entech SE and BEBO Health 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 Entech SE and BEBO Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entech SE SAS and BEBO Health SA, you can compare the effects of market volatilities on Entech SE and BEBO Health 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 Entech SE with a short position of BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entech SE and BEBO Health.
Diversification Opportunities for Entech SE and BEBO Health
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Entech and BEBO is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Entech SE SAS and BEBO Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEBO Health SA and Entech SE 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 Entech SE SAS are associated (or correlated) with BEBO Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEBO Health SA has no effect on the direction of Entech SE i.e., Entech SE and BEBO Health go up and down completely randomly.
Pair Corralation between Entech SE and BEBO Health
If you would invest 520.00 in Entech SE SAS on September 14, 2024 and sell it today you would earn a total of 86.00 from holding Entech SE SAS or generate 16.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entech SE SAS vs. BEBO Health SA
Performance |
| Timeline |
| Entech SE SAS |
| BEBO Health SA |
Entech SE and BEBO Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entech SE and BEBO Health
The main advantage of trading using opposite Entech SE and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entech SE position performs unexpectedly, BEBO Health 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 BEBO Health will offset losses from the drop in BEBO Health's long position.| Entech SE vs. Voltalia SA | Entech SE vs. Waga Energy SA | Entech SE vs. Haffner Energy SA | Entech SE vs. OVH Groupe SAS |
| BEBO Health vs. Seche Environnem | BEBO Health vs. X Fab Silicon | BEBO Health vs. Fiducial Office Solutions | BEBO Health vs. Linedata Services 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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