Correlation Between Lanson BCC and Malteries Franco
Can any of the company-specific risk be diversified away by investing in both Lanson BCC and Malteries Franco 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 Lanson BCC and Malteries Franco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lanson BCC SA and Malteries Franco Belges Socit, you can compare the effects of market volatilities on Lanson BCC and Malteries Franco 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 Lanson BCC with a short position of Malteries Franco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanson BCC and Malteries Franco.
Diversification Opportunities for Lanson BCC and Malteries Franco
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lanson and Malteries is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Lanson BCC SA and Malteries Franco Belges Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malteries Franco Belges and Lanson BCC 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 Lanson BCC SA are associated (or correlated) with Malteries Franco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malteries Franco Belges has no effect on the direction of Lanson BCC i.e., Lanson BCC and Malteries Franco go up and down completely randomly.
Pair Corralation between Lanson BCC and Malteries Franco
Assuming the 90 days trading horizon Lanson BCC SA is expected to under-perform the Malteries Franco. In addition to that, Lanson BCC is 1.01 times more volatile than Malteries Franco Belges Socit. It trades about -0.17 of its total potential returns per unit of risk. Malteries Franco Belges Socit is currently generating about 0.08 per unit of volatility. If you would invest 64,000 in Malteries Franco Belges Socit on September 2, 2024 and sell it today you would earn a total of 9,000 from holding Malteries Franco Belges Socit or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lanson BCC SA vs. Malteries Franco Belges Socit
Performance |
| Timeline |
| Lanson BCC SA |
| Malteries Franco Belges |
Lanson BCC and Malteries Franco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanson BCC and Malteries Franco
The main advantage of trading using opposite Lanson BCC and Malteries Franco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanson BCC position performs unexpectedly, Malteries Franco 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 Malteries Franco will offset losses from the drop in Malteries Franco's long position.| Lanson BCC vs. Adocia | Lanson BCC vs. Manitou BF SA | Lanson BCC vs. Ossiam Minimum Variance | Lanson BCC vs. Granite 3x LVMH |
| Malteries Franco vs. Grard Perrier Industrie | Malteries Franco vs. Robertet SA | Malteries Franco vs. Thermador Groupe SA | Malteries Franco vs. Piscines Desjoyaux 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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