Correlation Between Biomerieux and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both Biomerieux and Publicis Groupe 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 Biomerieux and Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerieux SA and Publicis Groupe SA, you can compare the effects of market volatilities on Biomerieux and Publicis Groupe 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 Biomerieux with a short position of Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerieux and Publicis Groupe.
Diversification Opportunities for Biomerieux and Publicis Groupe
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biomerieux and Publicis is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Biomerieux SA and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe SA and Biomerieux 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 Biomerieux SA are associated (or correlated) with Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of Biomerieux i.e., Biomerieux and Publicis Groupe go up and down completely randomly.
Pair Corralation between Biomerieux and Publicis Groupe
Assuming the 90 days trading horizon Biomerieux SA is expected to generate 1.13 times more return on investment than Publicis Groupe. However, Biomerieux is 1.13 times more volatile than Publicis Groupe SA. It trades about 0.05 of its potential returns per unit of risk. Publicis Groupe SA is currently generating about 0.04 per unit of risk. If you would invest 10,089 in Biomerieux SA on November 5, 2024 and sell it today you would earn a total of 1,621 from holding Biomerieux SA or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomerieux SA vs. Publicis Groupe SA
Performance |
| Timeline |
| Biomerieux SA |
| Publicis Groupe SA |
Biomerieux and Publicis Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerieux and Publicis Groupe
The main advantage of trading using opposite Biomerieux and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerieux position performs unexpectedly, Publicis Groupe 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 Publicis Groupe will offset losses from the drop in Publicis Groupe's long position.| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Eurofins Scientific SE | Biomerieux vs. Ipsen SA | Biomerieux vs. Edenred SA |
| Publicis Groupe vs. Bouygues SA | Publicis Groupe vs. Legrand SA | Publicis Groupe vs. Sodexo SA | Publicis Groupe vs. Compagnie de Saint Gobain |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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