Correlation Between Bnteau SA and Samse SA
Can any of the company-specific risk be diversified away by investing in both Bnteau SA and Samse SA 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 Samse SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bnteau SA and Samse SA, you can compare the effects of market volatilities on Bnteau SA and Samse SA 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 Samse SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bnteau SA and Samse SA.
Diversification Opportunities for Bnteau SA and Samse SA
Poor diversification
The 3 months correlation between Bnteau and Samse is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bnteau SA and Samse SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samse SA 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 Samse SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samse SA has no effect on the direction of Bnteau SA i.e., Bnteau SA and Samse SA go up and down completely randomly.
Pair Corralation between Bnteau SA and Samse SA
Assuming the 90 days trading horizon Bnteau SA is expected to generate 1.23 times more return on investment than Samse SA. However, Bnteau SA is 1.23 times more volatile than Samse SA. It trades about -0.06 of its potential returns per unit of risk. Samse SA is currently generating about -0.19 per unit of risk. If you would invest 888.00 in Bnteau SA on September 13, 2024 and sell it today you would lose (30.00) from holding Bnteau SA or give up 3.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bnteau SA vs. Samse SA
Performance |
| Timeline |
| Bnteau SA |
| Samse SA |
Bnteau SA and Samse SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bnteau SA and Samse SA
The main advantage of trading using opposite Bnteau SA and Samse SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bnteau SA position performs unexpectedly, Samse SA 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 Samse SA will offset losses from the drop in Samse SA's long position.| Bnteau SA vs. Trigano SA | Bnteau SA vs. SA Catana Group | Bnteau SA vs. Fountaine Pajo | Bnteau SA vs. Piscines Desjoyaux 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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