Correlation Between Poujoulat and Clasquin
Can any of the company-specific risk be diversified away by investing in both Poujoulat and Clasquin 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 Poujoulat and Clasquin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poujoulat SA and Clasquin, you can compare the effects of market volatilities on Poujoulat and Clasquin 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 Poujoulat with a short position of Clasquin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poujoulat and Clasquin.
Diversification Opportunities for Poujoulat and Clasquin
Pay attention - limited upside
The 3 months correlation between Poujoulat and Clasquin is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Poujoulat SA and Clasquin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clasquin and Poujoulat 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 Poujoulat SA are associated (or correlated) with Clasquin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clasquin has no effect on the direction of Poujoulat i.e., Poujoulat and Clasquin go up and down completely randomly.
Pair Corralation between Poujoulat and Clasquin
Assuming the 90 days trading horizon Poujoulat SA is expected to under-perform the Clasquin. In addition to that, Poujoulat is 1.02 times more volatile than Clasquin. It trades about -0.06 of its total potential returns per unit of risk. Clasquin is currently generating about 0.1 per unit of volatility. If you would invest 5,069 in Clasquin on August 30, 2024 and sell it today you would earn a total of 9,076 from holding Clasquin or generate 179.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poujoulat SA vs. Clasquin
Performance |
| Timeline |
| Poujoulat SA |
| Clasquin |
Poujoulat and Clasquin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poujoulat and Clasquin
The main advantage of trading using opposite Poujoulat and Clasquin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poujoulat position performs unexpectedly, Clasquin 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 Clasquin will offset losses from the drop in Clasquin's long position.| Poujoulat vs. Moulinvest | Poujoulat vs. SA Catana Group | Poujoulat vs. Piscines Desjoyaux SA | Poujoulat vs. Thermador Groupe SA |
| Clasquin vs. Thermador Groupe SA | Clasquin vs. Bastide Le Confort | Clasquin vs. Jacquet Metal Service | Clasquin vs. Chargeurs 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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