Correlation Between Barco NV and Immersion
Can any of the company-specific risk be diversified away by investing in both Barco NV and Immersion 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 Barco NV and Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barco NV and Immersion SA, you can compare the effects of market volatilities on Barco NV and Immersion 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 Barco NV with a short position of Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barco NV and Immersion.
Diversification Opportunities for Barco NV and Immersion
Average diversification
The 3 months correlation between Barco and Immersion is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Barco NV and Immersion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immersion SA and Barco NV 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 Barco NV are associated (or correlated) with Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immersion SA has no effect on the direction of Barco NV i.e., Barco NV and Immersion go up and down completely randomly.
Pair Corralation between Barco NV and Immersion
Assuming the 90 days trading horizon Barco NV is expected to generate 0.29 times more return on investment than Immersion. However, Barco NV is 3.43 times less risky than Immersion. It trades about -0.45 of its potential returns per unit of risk. Immersion SA is currently generating about -0.16 per unit of risk. If you would invest 1,146 in Barco NV on September 3, 2024 and sell it today you would lose (135.00) from holding Barco NV or give up 11.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barco NV vs. Immersion SA
Performance |
| Timeline |
| Barco NV |
| Immersion SA |
Barco NV and Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barco NV and Immersion
The main advantage of trading using opposite Barco NV and Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barco NV position performs unexpectedly, Immersion 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 Immersion will offset losses from the drop in Immersion's long position.| Barco NV vs. Kinepolis Group NV | Barco NV vs. ageas SANV | Barco NV vs. Ackermans Van Haaren | Barco NV vs. Solvay SA |
| Immersion vs. Melexis NV | Immersion vs. ageas SANV | Immersion vs. Sofina Socit Anonyme | Immersion vs. Barco NV |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| 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 | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world |