Correlation Between Barco NV and Jensen
Can any of the company-specific risk be diversified away by investing in both Barco NV and Jensen 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 Jensen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barco NV and Jensen Group, you can compare the effects of market volatilities on Barco NV and Jensen 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 Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barco NV and Jensen.
Diversification Opportunities for Barco NV and Jensen
Weak diversification
The 3 months correlation between Barco and Jensen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Barco NV and Jensen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Group 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 Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Group has no effect on the direction of Barco NV i.e., Barco NV and Jensen go up and down completely randomly.
Pair Corralation between Barco NV and Jensen
If you would invest (100.00) in Jensen Group on August 27, 2024 and sell it today you would earn a total of 100.00 from holding Jensen Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Barco NV vs. Jensen Group
Performance |
| Timeline |
| Barco NV |
| Jensen Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barco NV and Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barco NV and Jensen
The main advantage of trading using opposite Barco NV and Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barco NV position performs unexpectedly, Jensen 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 Jensen will offset losses from the drop in Jensen'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 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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