Correlation Between Poujoulat and Vicat SA
Can any of the company-specific risk be diversified away by investing in both Poujoulat and Vicat SA 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 Vicat SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poujoulat SA and Vicat SA, you can compare the effects of market volatilities on Poujoulat and Vicat SA 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 Vicat SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poujoulat and Vicat SA.
Diversification Opportunities for Poujoulat and Vicat SA
Pay attention - limited upside
The 3 months correlation between Poujoulat and Vicat is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Poujoulat SA and Vicat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vicat SA 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 Vicat SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vicat SA has no effect on the direction of Poujoulat i.e., Poujoulat and Vicat SA go up and down completely randomly.
Pair Corralation between Poujoulat and Vicat SA
Assuming the 90 days trading horizon Poujoulat SA is expected to under-perform the Vicat SA. But the stock apears to be less risky and, when comparing its historical volatility, Poujoulat SA is 1.08 times less risky than Vicat SA. The stock trades about -0.14 of its potential returns per unit of risk. The Vicat SA is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,415 in Vicat SA on August 25, 2024 and sell it today you would earn a total of 270.00 from holding Vicat SA or generate 7.91% 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. Vicat SA
Performance |
| Timeline |
| Poujoulat SA |
| Vicat SA |
Poujoulat and Vicat SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poujoulat and Vicat SA
The main advantage of trading using opposite Poujoulat and Vicat SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poujoulat position performs unexpectedly, Vicat SA 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 Vicat SA will offset losses from the drop in Vicat SA's long position.| Poujoulat vs. Prodways Group SA | Poujoulat vs. Claranova SE | Poujoulat vs. DBV Technologies SA | Poujoulat 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |