Correlation Between Gevelot and Jacques Bogart
Can any of the company-specific risk be diversified away by investing in both Gevelot and Jacques Bogart 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 Gevelot and Jacques Bogart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gevelot and Jacques Bogart SA, you can compare the effects of market volatilities on Gevelot and Jacques Bogart 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 Gevelot with a short position of Jacques Bogart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gevelot and Jacques Bogart.
Diversification Opportunities for Gevelot and Jacques Bogart
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gevelot and Jacques is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gevelot and Jacques Bogart SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacques Bogart SA and Gevelot 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 Gevelot are associated (or correlated) with Jacques Bogart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacques Bogart SA has no effect on the direction of Gevelot i.e., Gevelot and Jacques Bogart go up and down completely randomly.
Pair Corralation between Gevelot and Jacques Bogart
Assuming the 90 days trading horizon Gevelot is expected to generate 0.94 times more return on investment than Jacques Bogart. However, Gevelot is 1.06 times less risky than Jacques Bogart. It trades about 0.02 of its potential returns per unit of risk. Jacques Bogart SA is currently generating about -0.03 per unit of risk. If you would invest 17,527 in Gevelot on August 26, 2024 and sell it today you would earn a total of 1,273 from holding Gevelot or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.01% |
| Values | Daily Returns |
Gevelot vs. Jacques Bogart SA
Performance |
| Timeline |
| Gevelot |
| Jacques Bogart SA |
Gevelot and Jacques Bogart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gevelot and Jacques Bogart
The main advantage of trading using opposite Gevelot and Jacques Bogart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gevelot position performs unexpectedly, Jacques Bogart 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 Jacques Bogart will offset losses from the drop in Jacques Bogart's long position.| Gevelot vs. Prodways Group SA | Gevelot vs. Claranova SE | Gevelot vs. DBV Technologies SA | Gevelot vs. Manitou BF SA |
| Jacques Bogart vs. Stef SA | Jacques Bogart vs. Bonduelle SCA | Jacques Bogart vs. Lisi SA | Jacques Bogart vs. Interparfums 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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