Correlation Between Bnteau SA and Mtropole Tlvision
Can any of the company-specific risk be diversified away by investing in both Bnteau SA and Mtropole Tlvision 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 Bnteau SA and Mtropole Tlvision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bnteau SA and Mtropole Tlvision SA, you can compare the effects of market volatilities on Bnteau SA and Mtropole Tlvision 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 Bnteau SA with a short position of Mtropole Tlvision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bnteau SA and Mtropole Tlvision.
Diversification Opportunities for Bnteau SA and Mtropole Tlvision
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bnteau and Mtropole is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bnteau SA and Mtropole Tlvision SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mtropole Tlvision and Bnteau SA 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 Bnteau SA are associated (or correlated) with Mtropole Tlvision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mtropole Tlvision has no effect on the direction of Bnteau SA i.e., Bnteau SA and Mtropole Tlvision go up and down completely randomly.
Pair Corralation between Bnteau SA and Mtropole Tlvision
Assuming the 90 days trading horizon Bnteau SA is expected to generate 2.82 times more return on investment than Mtropole Tlvision. However, Bnteau SA is 2.82 times more volatile than Mtropole Tlvision SA. It trades about 0.04 of its potential returns per unit of risk. Mtropole Tlvision SA is currently generating about 0.04 per unit of risk. If you would invest 899.00 in Bnteau SA on November 28, 2024 and sell it today you would earn a total of 109.00 from holding Bnteau SA or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bnteau SA vs. Mtropole Tlvision SA
Performance |
| Timeline |
| Bnteau SA |
| Mtropole Tlvision |
Bnteau SA and Mtropole Tlvision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bnteau SA and Mtropole Tlvision
The main advantage of trading using opposite Bnteau SA and Mtropole Tlvision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bnteau SA position performs unexpectedly, Mtropole Tlvision 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 Mtropole Tlvision will offset losses from the drop in Mtropole Tlvision's long position.| Bnteau SA vs. Trigano SA | Bnteau SA vs. Bonduelle SCA | Bnteau SA vs. Socit BIC SA | Bnteau SA vs. Imerys SA |
| Mtropole Tlvision vs. Television Francaise 1 | Mtropole Tlvision vs. Nexity | Mtropole Tlvision vs. Lagardere SCA | Mtropole Tlvision vs. Eutelsat Communications 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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