Correlation Between Bains Mer and Compagnie Des
Can any of the company-specific risk be diversified away by investing in both Bains Mer and Compagnie Des 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 Bains Mer and Compagnie Des into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bains Mer Monaco and Compagnie des Alpes, you can compare the effects of market volatilities on Bains Mer and Compagnie Des 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 Bains Mer with a short position of Compagnie Des. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bains Mer and Compagnie Des.
Diversification Opportunities for Bains Mer and Compagnie Des
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bains and Compagnie is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bains Mer Monaco and Compagnie des Alpes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie des Alpes and Bains Mer 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 Bains Mer Monaco are associated (or correlated) with Compagnie Des. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie des Alpes has no effect on the direction of Bains Mer i.e., Bains Mer and Compagnie Des go up and down completely randomly.
Pair Corralation between Bains Mer and Compagnie Des
Assuming the 90 days trading horizon Bains Mer Monaco is expected to under-perform the Compagnie Des. In addition to that, Bains Mer is 1.56 times more volatile than Compagnie des Alpes. It trades about -0.02 of its total potential returns per unit of risk. Compagnie des Alpes is currently generating about 0.16 per unit of volatility. If you would invest 1,368 in Compagnie des Alpes on September 12, 2024 and sell it today you would earn a total of 112.00 from holding Compagnie des Alpes or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bains Mer Monaco vs. Compagnie des Alpes
Performance |
| Timeline |
| Bains Mer Monaco |
| Compagnie des Alpes |
Bains Mer and Compagnie Des Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bains Mer and Compagnie Des
The main advantage of trading using opposite Bains Mer and Compagnie Des positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bains Mer position performs unexpectedly, Compagnie Des 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 Compagnie Des will offset losses from the drop in Compagnie Des' long position.| Bains Mer vs. Compagnie des Alpes | Bains Mer vs. Groupe Partouche SA | Bains Mer vs. Bnteau SA | Bains Mer vs. Boiron SA |
| Compagnie Des vs. X Fab Silicon | Compagnie Des vs. Eurazeo | Compagnie Des vs. Groep Brussel Lambert | Compagnie Des vs. Bnteau 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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