Correlation Between Mr Bricolage and Roche Bobois
Can any of the company-specific risk be diversified away by investing in both Mr Bricolage and Roche Bobois 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 Mr Bricolage and Roche Bobois into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mr Bricolage and Roche Bobois, you can compare the effects of market volatilities on Mr Bricolage and Roche Bobois 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 Mr Bricolage with a short position of Roche Bobois. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mr Bricolage and Roche Bobois.
Diversification Opportunities for Mr Bricolage and Roche Bobois
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ALMRB and Roche is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mr Bricolage and Roche Bobois in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roche Bobois and Mr Bricolage 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 Mr Bricolage are associated (or correlated) with Roche Bobois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roche Bobois has no effect on the direction of Mr Bricolage i.e., Mr Bricolage and Roche Bobois go up and down completely randomly.
Pair Corralation between Mr Bricolage and Roche Bobois
Assuming the 90 days trading horizon Mr Bricolage is expected to generate 0.86 times more return on investment than Roche Bobois. However, Mr Bricolage is 1.16 times less risky than Roche Bobois. It trades about -0.04 of its potential returns per unit of risk. Roche Bobois is currently generating about -0.11 per unit of risk. If you would invest 868.00 in Mr Bricolage on September 1, 2024 and sell it today you would lose (68.00) from holding Mr Bricolage or give up 7.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mr Bricolage vs. Roche Bobois
Performance |
| Timeline |
| Mr Bricolage |
| Roche Bobois |
Mr Bricolage and Roche Bobois Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mr Bricolage and Roche Bobois
The main advantage of trading using opposite Mr Bricolage and Roche Bobois positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mr Bricolage position performs unexpectedly, Roche Bobois 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 Roche Bobois will offset losses from the drop in Roche Bobois' long position.| Mr Bricolage vs. Centrale dAchat Franaise | Mr Bricolage vs. Roche Bobois | Mr Bricolage vs. Piscines Desjoyaux SA | Mr Bricolage vs. Vente Unique |
| Roche Bobois vs. Vente Unique | Roche Bobois vs. Groupe Sfpi | Roche Bobois vs. Cegedim SA | Roche Bobois vs. SA Catana Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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