Correlation Between Fountaine Pajo and Piscines Desjoyaux
Can any of the company-specific risk be diversified away by investing in both Fountaine Pajo and Piscines Desjoyaux 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 Fountaine Pajo and Piscines Desjoyaux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fountaine Pajo and Piscines Desjoyaux SA, you can compare the effects of market volatilities on Fountaine Pajo and Piscines Desjoyaux 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 Fountaine Pajo with a short position of Piscines Desjoyaux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fountaine Pajo and Piscines Desjoyaux.
Diversification Opportunities for Fountaine Pajo and Piscines Desjoyaux
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fountaine and Piscines is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Fountaine Pajo and Piscines Desjoyaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piscines Desjoyaux and Fountaine Pajo 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 Fountaine Pajo are associated (or correlated) with Piscines Desjoyaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piscines Desjoyaux has no effect on the direction of Fountaine Pajo i.e., Fountaine Pajo and Piscines Desjoyaux go up and down completely randomly.
Pair Corralation between Fountaine Pajo and Piscines Desjoyaux
Assuming the 90 days trading horizon Fountaine Pajo is expected to under-perform the Piscines Desjoyaux. But the stock apears to be less risky and, when comparing its historical volatility, Fountaine Pajo is 1.05 times less risky than Piscines Desjoyaux. The stock trades about -0.43 of its potential returns per unit of risk. The Piscines Desjoyaux SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,180 in Piscines Desjoyaux SA on September 4, 2024 and sell it today you would earn a total of 40.00 from holding Piscines Desjoyaux SA or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fountaine Pajo vs. Piscines Desjoyaux SA
Performance |
| Timeline |
| Fountaine Pajo |
| Piscines Desjoyaux |
Fountaine Pajo and Piscines Desjoyaux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fountaine Pajo and Piscines Desjoyaux
The main advantage of trading using opposite Fountaine Pajo and Piscines Desjoyaux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fountaine Pajo position performs unexpectedly, Piscines Desjoyaux 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 Piscines Desjoyaux will offset losses from the drop in Piscines Desjoyaux's long position.| Fountaine Pajo vs. SA Catana Group | Fountaine Pajo vs. Trigano SA | Fountaine Pajo vs. Bnteau SA | Fountaine Pajo vs. Piscines Desjoyaux SA |
| Piscines Desjoyaux vs. SA Catana Group | Piscines Desjoyaux vs. Thermador Groupe SA | Piscines Desjoyaux vs. Trigano SA | Piscines Desjoyaux vs. Groupe Guillin 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Correlations Find global opportunities by holding instruments from different markets |