Correlation Between Moulinvest and Sapmer
Can any of the company-specific risk be diversified away by investing in both Moulinvest and Sapmer 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 Moulinvest and Sapmer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moulinvest and Sapmer, you can compare the effects of market volatilities on Moulinvest and Sapmer 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 Moulinvest with a short position of Sapmer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moulinvest and Sapmer.
Diversification Opportunities for Moulinvest and Sapmer
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Moulinvest and Sapmer is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Moulinvest and Sapmer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapmer and Moulinvest 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 Moulinvest are associated (or correlated) with Sapmer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapmer has no effect on the direction of Moulinvest i.e., Moulinvest and Sapmer go up and down completely randomly.
Pair Corralation between Moulinvest and Sapmer
Assuming the 90 days trading horizon Moulinvest is expected to under-perform the Sapmer. But the stock apears to be less risky and, when comparing its historical volatility, Moulinvest is 1.76 times less risky than Sapmer. The stock trades about -0.06 of its potential returns per unit of risk. The Sapmer is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,300 in Sapmer on September 14, 2024 and sell it today you would lose (585.00) from holding Sapmer or give up 45.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.23% |
| Values | Daily Returns |
Moulinvest vs. Sapmer
Performance |
| Timeline |
| Moulinvest |
| Sapmer |
Moulinvest and Sapmer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moulinvest and Sapmer
The main advantage of trading using opposite Moulinvest and Sapmer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moulinvest position performs unexpectedly, Sapmer 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 Sapmer will offset losses from the drop in Sapmer's long position.| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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