Correlation Between Integragen and Moulinvest
Can any of the company-specific risk be diversified away by investing in both Integragen and Moulinvest 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 Integragen and Moulinvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integragen and Moulinvest, you can compare the effects of market volatilities on Integragen and Moulinvest 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 Integragen with a short position of Moulinvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integragen and Moulinvest.
Diversification Opportunities for Integragen and Moulinvest
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Integragen and Moulinvest is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Integragen and Moulinvest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moulinvest and Integragen 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 Integragen are associated (or correlated) with Moulinvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moulinvest has no effect on the direction of Integragen i.e., Integragen and Moulinvest go up and down completely randomly.
Pair Corralation between Integragen and Moulinvest
Assuming the 90 days trading horizon Integragen is expected to under-perform the Moulinvest. In addition to that, Integragen is 2.76 times more volatile than Moulinvest. It trades about -0.07 of its total potential returns per unit of risk. Moulinvest is currently generating about -0.06 per unit of volatility. If you would invest 1,380 in Moulinvest on August 25, 2024 and sell it today you would lose (70.00) from holding Moulinvest or give up 5.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integragen vs. Moulinvest
Performance |
| Timeline |
| Integragen |
| Moulinvest |
Integragen and Moulinvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integragen and Moulinvest
The main advantage of trading using opposite Integragen and Moulinvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integragen position performs unexpectedly, Moulinvest 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 Moulinvest will offset losses from the drop in Moulinvest's long position.The idea behind Integragen and Moulinvest 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.| Moulinvest vs. SA Catana Group | Moulinvest vs. Poujoulat SA | Moulinvest vs. Piscines Desjoyaux SA | Moulinvest vs. Cogra 48 Socit |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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