Correlation Between Belysse Group and Jensen
Can any of the company-specific risk be diversified away by investing in both Belysse Group 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 Belysse Group and Jensen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belysse Group NV and Jensen Group, you can compare the effects of market volatilities on Belysse Group 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 Belysse Group with a short position of Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belysse Group and Jensen.
Diversification Opportunities for Belysse Group and Jensen
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Belysse and Jensen is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Belysse Group NV and Jensen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Group and Belysse Group 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 Belysse Group 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 Belysse Group i.e., Belysse Group and Jensen go up and down completely randomly.
Pair Corralation between Belysse Group and Jensen
Assuming the 90 days trading horizon Belysse Group NV is expected to under-perform the Jensen. In addition to that, Belysse Group is 1.71 times more volatile than Jensen Group. It trades about -0.13 of its total potential returns per unit of risk. Jensen Group is currently generating about -0.01 per unit of volatility. If you would invest 4,350 in Jensen Group on September 12, 2024 and sell it today you would lose (100.00) from holding Jensen Group or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.19% |
| Values | Daily Returns |
Belysse Group NV vs. Jensen Group
Performance |
| Timeline |
| Belysse Group NV |
| Jensen Group |
Belysse Group and Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belysse Group and Jensen
The main advantage of trading using opposite Belysse Group and Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belysse Group 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.| Belysse Group vs. Biocartis Group NV | Belysse Group vs. Oxurion NV | Belysse Group vs. Exmar NV | Belysse Group vs. Iep Invest |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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