Correlation Between VEOM Group and Bains Mer
Can any of the company-specific risk be diversified away by investing in both VEOM Group and Bains Mer 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 VEOM Group and Bains Mer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VEOM Group SA and Bains Mer Monaco, you can compare the effects of market volatilities on VEOM Group and Bains Mer 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 VEOM Group with a short position of Bains Mer. Check out your portfolio center. Please also check ongoing floating volatility patterns of VEOM Group and Bains Mer.
Diversification Opportunities for VEOM Group and Bains Mer
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VEOM and Bains is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding VEOM Group SA and Bains Mer Monaco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bains Mer Monaco and VEOM Group 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 VEOM Group SA are associated (or correlated) with Bains Mer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bains Mer Monaco has no effect on the direction of VEOM Group i.e., VEOM Group and Bains Mer go up and down completely randomly.
Pair Corralation between VEOM Group and Bains Mer
Assuming the 90 days trading horizon VEOM Group SA is expected to generate 7.12 times more return on investment than Bains Mer. However, VEOM Group is 7.12 times more volatile than Bains Mer Monaco. It trades about 0.21 of its potential returns per unit of risk. Bains Mer Monaco is currently generating about -0.03 per unit of risk. If you would invest 11.00 in VEOM Group SA on October 25, 2024 and sell it today you would earn a total of 4.00 from holding VEOM Group SA or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VEOM Group SA vs. Bains Mer Monaco
Performance |
| Timeline |
| VEOM Group SA |
| Bains Mer Monaco |
VEOM Group and Bains Mer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VEOM Group and Bains Mer
The main advantage of trading using opposite VEOM Group and Bains Mer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VEOM Group position performs unexpectedly, Bains Mer 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 Bains Mer will offset losses from the drop in Bains Mer's long position.| VEOM Group vs. Linedata Services SA | VEOM Group vs. Pullup Entertainment Socit | VEOM Group vs. Les Hotels Bav | VEOM Group vs. Invibes Advertising NV |
| Bains Mer vs. Compagnie des Alpes | Bains Mer vs. Groupe Partouche SA | Bains Mer vs. Bnteau SA | Bains Mer vs. Boiron 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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