Correlation Between AEON STORES and Dassault Systmes
Can any of the company-specific risk be diversified away by investing in both AEON STORES and Dassault Systmes 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 AEON STORES and Dassault Systmes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and Dassault Systmes SE, you can compare the effects of market volatilities on AEON STORES and Dassault Systmes 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 AEON STORES with a short position of Dassault Systmes. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and Dassault Systmes.
Diversification Opportunities for AEON STORES and Dassault Systmes
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AEON and Dassault is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and Dassault Systmes SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dassault Systmes and AEON STORES 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 AEON STORES are associated (or correlated) with Dassault Systmes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dassault Systmes has no effect on the direction of AEON STORES i.e., AEON STORES and Dassault Systmes go up and down completely randomly.
Pair Corralation between AEON STORES and Dassault Systmes
If you would invest 3,220 in Dassault Systmes SE on September 13, 2024 and sell it today you would earn a total of 240.00 from holding Dassault Systmes SE or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. Dassault Systmes SE
Performance |
| Timeline |
| AEON STORES |
| Dassault Systmes |
AEON STORES and Dassault Systmes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and Dassault Systmes
The main advantage of trading using opposite AEON STORES and Dassault Systmes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES position performs unexpectedly, Dassault Systmes 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 Dassault Systmes will offset losses from the drop in Dassault Systmes' long position.| AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc |
| Dassault Systmes vs. National Bank Holdings | Dassault Systmes vs. SINGAPORE AIRLINES | Dassault Systmes vs. CHIBA BANK | Dassault Systmes vs. Chiba Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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