Correlation Between Vente Unique and Poujoulat
Can any of the company-specific risk be diversified away by investing in both Vente Unique and Poujoulat 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 Vente Unique and Poujoulat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vente Unique and Poujoulat SA, you can compare the effects of market volatilities on Vente Unique and Poujoulat 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 Vente Unique with a short position of Poujoulat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vente Unique and Poujoulat.
Diversification Opportunities for Vente Unique and Poujoulat
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vente and Poujoulat is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vente Unique and Poujoulat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poujoulat SA and Vente Unique 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 Vente Unique are associated (or correlated) with Poujoulat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poujoulat SA has no effect on the direction of Vente Unique i.e., Vente Unique and Poujoulat go up and down completely randomly.
Pair Corralation between Vente Unique and Poujoulat
Assuming the 90 days trading horizon Vente Unique is expected to under-perform the Poujoulat. In addition to that, Vente Unique is 1.06 times more volatile than Poujoulat SA. It trades about -0.24 of its total potential returns per unit of risk. Poujoulat SA is currently generating about -0.13 per unit of volatility. If you would invest 1,070 in Poujoulat SA on August 29, 2024 and sell it today you would lose (60.00) from holding Poujoulat SA or give up 5.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vente Unique vs. Poujoulat SA
Performance |
| Timeline |
| Vente Unique |
| Poujoulat SA |
Vente Unique and Poujoulat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vente Unique and Poujoulat
The main advantage of trading using opposite Vente Unique and Poujoulat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vente Unique position performs unexpectedly, Poujoulat 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 Poujoulat will offset losses from the drop in Poujoulat's long position.| Vente Unique vs. Piscines Desjoyaux SA | Vente Unique vs. Groupe LDLC SA | Vente Unique vs. Centrale dAchat Franaise | Vente Unique vs. Akwel SA |
| Poujoulat vs. Moulinvest | Poujoulat vs. SA Catana Group | Poujoulat vs. Piscines Desjoyaux SA | Poujoulat vs. Thermador Groupe 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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