Correlation Between Vente Unique and Maisons Du
Can any of the company-specific risk be diversified away by investing in both Vente Unique and Maisons Du 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 Maisons Du into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vente Unique and Maisons du Monde, you can compare the effects of market volatilities on Vente Unique and Maisons Du 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 Maisons Du. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vente Unique and Maisons Du.
Diversification Opportunities for Vente Unique and Maisons Du
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vente and Maisons is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vente Unique and Maisons du Monde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maisons du Monde 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 Maisons Du. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maisons du Monde has no effect on the direction of Vente Unique i.e., Vente Unique and Maisons Du go up and down completely randomly.
Pair Corralation between Vente Unique and Maisons Du
Assuming the 90 days trading horizon Vente Unique is expected to under-perform the Maisons Du. But the stock apears to be less risky and, when comparing its historical volatility, Vente Unique is 1.17 times less risky than Maisons Du. The stock trades about -0.34 of its potential returns per unit of risk. The Maisons du Monde is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 386.00 in Maisons du Monde on September 3, 2024 and sell it today you would lose (25.00) from holding Maisons du Monde or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vente Unique vs. Maisons du Monde
Performance |
| Timeline |
| Vente Unique |
| Maisons du Monde |
Vente Unique and Maisons Du Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vente Unique and Maisons Du
The main advantage of trading using opposite Vente Unique and Maisons Du positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vente Unique position performs unexpectedly, Maisons Du 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 Maisons Du will offset losses from the drop in Maisons Du'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 |
| Maisons Du vs. Fnac Darty SA | Maisons Du vs. Trigano SA | Maisons Du vs. Elis SA | Maisons Du vs. Derichebourg |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |