Correlation Between Bains Mer and Ferm Casino
Can any of the company-specific risk be diversified away by investing in both Bains Mer and Ferm Casino 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 Ferm Casino 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 Ferm Casino Mun, you can compare the effects of market volatilities on Bains Mer and Ferm Casino 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 Ferm Casino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bains Mer and Ferm Casino.
Diversification Opportunities for Bains Mer and Ferm Casino
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bains and Ferm is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bains Mer Monaco and Ferm Casino Mun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferm Casino Mun 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 Ferm Casino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferm Casino Mun has no effect on the direction of Bains Mer i.e., Bains Mer and Ferm Casino go up and down completely randomly.
Pair Corralation between Bains Mer and Ferm Casino
Assuming the 90 days trading horizon Bains Mer Monaco is expected to generate 1.44 times more return on investment than Ferm Casino. However, Bains Mer is 1.44 times more volatile than Ferm Casino Mun. It trades about 0.01 of its potential returns per unit of risk. Ferm Casino Mun is currently generating about 0.0 per unit of risk. If you would invest 10,699 in Bains Mer Monaco on September 1, 2024 and sell it today you would lose (49.00) from holding Bains Mer Monaco or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Bains Mer Monaco vs. Ferm Casino Mun
Performance |
| Timeline |
| Bains Mer Monaco |
| Ferm Casino Mun |
Bains Mer and Ferm Casino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bains Mer and Ferm Casino
The main advantage of trading using opposite Bains Mer and Ferm Casino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bains Mer position performs unexpectedly, Ferm Casino 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 Ferm Casino will offset losses from the drop in Ferm Casino's long position.| Bains Mer vs. Compagnie des Alpes | Bains Mer vs. Groupe Partouche SA | Bains Mer vs. Bnteau SA | Bains Mer vs. Boiron SA |
| Ferm Casino vs. Groupe Partouche SA | Ferm Casino vs. Bains Mer Monaco | Ferm Casino vs. Malteries Franco Belges Socit | Ferm Casino vs. Robertet 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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