Correlation Between Fill Up and BEBO Health
Can any of the company-specific risk be diversified away by investing in both Fill Up 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 Fill Up and BEBO Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fill Up Media and BEBO Health SA, you can compare the effects of market volatilities on Fill Up 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 Fill Up with a short position of BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fill Up and BEBO Health.
Diversification Opportunities for Fill Up and BEBO Health
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fill and BEBO is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fill Up Media 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 Fill Up 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 Fill Up Media 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 Fill Up i.e., Fill Up and BEBO Health go up and down completely randomly.
Pair Corralation between Fill Up and BEBO Health
Assuming the 90 days trading horizon Fill Up Media is expected to generate 0.83 times more return on investment than BEBO Health. However, Fill Up Media is 1.2 times less risky than BEBO Health. It trades about -0.02 of its potential returns per unit of risk. BEBO Health SA is currently generating about -0.07 per unit of risk. If you would invest 950.00 in Fill Up Media on September 4, 2024 and sell it today you would lose (340.00) from holding Fill Up Media or give up 35.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.23% |
| Values | Daily Returns |
Fill Up Media vs. BEBO Health SA
Performance |
| Timeline |
| Fill Up Media |
| BEBO Health SA |
Fill Up and BEBO Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fill Up and BEBO Health
The main advantage of trading using opposite Fill Up and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fill Up 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.| Fill Up vs. Nacon Sa | Fill Up vs. Icape Holding | Fill Up vs. Grolleau SAS | Fill Up vs. Hydrogene De France |
| BEBO Health vs. Gaztransport Technigaz SAS | BEBO Health vs. Jacquet Metal Service | BEBO Health vs. Reworld Media |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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