Correlation Between BigBen Interactive and Coheris SA
Can any of the company-specific risk be diversified away by investing in both BigBen Interactive and Coheris 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 BigBen Interactive and Coheris SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBen Interactive and Coheris SA, you can compare the effects of market volatilities on BigBen Interactive and Coheris 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 BigBen Interactive with a short position of Coheris SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBen Interactive and Coheris SA.
Diversification Opportunities for BigBen Interactive and Coheris SA
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BigBen and Coheris is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding BigBen Interactive and Coheris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coheris SA and BigBen Interactive 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 BigBen Interactive are associated (or correlated) with Coheris SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coheris SA has no effect on the direction of BigBen Interactive i.e., BigBen Interactive and Coheris SA go up and down completely randomly.
Pair Corralation between BigBen Interactive and Coheris SA
Assuming the 90 days trading horizon BigBen Interactive is expected to under-perform the Coheris SA. In addition to that, BigBen Interactive is 1.04 times more volatile than Coheris SA. It trades about -0.1 of its total potential returns per unit of risk. Coheris SA is currently generating about 0.06 per unit of volatility. If you would invest 514.00 in Coheris SA on September 12, 2024 and sell it today you would earn a total of 296.00 from holding Coheris SA or generate 57.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
BigBen Interactive vs. Coheris SA
Performance |
| Timeline |
| BigBen Interactive |
| Coheris SA |
BigBen Interactive and Coheris SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBen Interactive and Coheris SA
The main advantage of trading using opposite BigBen Interactive and Coheris SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBen Interactive position performs unexpectedly, Coheris 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 Coheris SA will offset losses from the drop in Coheris SA's long position.| BigBen Interactive vs. Nacon Sa | BigBen Interactive vs. Chargeurs SA | BigBen Interactive vs. Claranova SE | BigBen Interactive vs. Trigano SA |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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