Correlation Between Lexibook Linguistic and Sogeclair
Can any of the company-specific risk be diversified away by investing in both Lexibook Linguistic and Sogeclair 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 Lexibook Linguistic and Sogeclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexibook Linguistic Electronic and Sogeclair SA, you can compare the effects of market volatilities on Lexibook Linguistic and Sogeclair 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 Lexibook Linguistic with a short position of Sogeclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexibook Linguistic and Sogeclair.
Diversification Opportunities for Lexibook Linguistic and Sogeclair
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lexibook and Sogeclair is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lexibook Linguistic Electronic and Sogeclair SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogeclair SA and Lexibook Linguistic 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 Lexibook Linguistic Electronic are associated (or correlated) with Sogeclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogeclair SA has no effect on the direction of Lexibook Linguistic i.e., Lexibook Linguistic and Sogeclair go up and down completely randomly.
Pair Corralation between Lexibook Linguistic and Sogeclair
Assuming the 90 days trading horizon Lexibook Linguistic Electronic is expected to generate 0.93 times more return on investment than Sogeclair. However, Lexibook Linguistic Electronic is 1.07 times less risky than Sogeclair. It trades about 0.05 of its potential returns per unit of risk. Sogeclair SA is currently generating about -0.06 per unit of risk. If you would invest 349.00 in Lexibook Linguistic Electronic on September 2, 2024 and sell it today you would earn a total of 50.00 from holding Lexibook Linguistic Electronic or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexibook Linguistic Electronic vs. Sogeclair SA
Performance |
| Timeline |
| Lexibook Linguistic |
| Sogeclair SA |
Lexibook Linguistic and Sogeclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexibook Linguistic and Sogeclair
The main advantage of trading using opposite Lexibook Linguistic and Sogeclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexibook Linguistic position performs unexpectedly, Sogeclair 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 Sogeclair will offset losses from the drop in Sogeclair's long position.| Lexibook Linguistic vs. Vente Unique | Lexibook Linguistic vs. Groupe Sfpi | Lexibook Linguistic vs. Cegedim SA | Lexibook Linguistic vs. SA Catana Group |
| Sogeclair vs. LVMH Mot Hennessy | Sogeclair vs. LOreal SA | Sogeclair vs. Hermes International SCA | Sogeclair vs. Manitou BF 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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