Correlation Between Boiron SA and Netmedia Group
Can any of the company-specific risk be diversified away by investing in both Boiron SA and Netmedia Group 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 Boiron SA and Netmedia Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boiron SA and Netmedia Group SA, you can compare the effects of market volatilities on Boiron SA and Netmedia Group 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 Boiron SA with a short position of Netmedia Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boiron SA and Netmedia Group.
Diversification Opportunities for Boiron SA and Netmedia Group
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boiron and Netmedia is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Boiron SA and Netmedia Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netmedia Group SA and Boiron 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 Boiron SA are associated (or correlated) with Netmedia Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netmedia Group SA has no effect on the direction of Boiron SA i.e., Boiron SA and Netmedia Group go up and down completely randomly.
Pair Corralation between Boiron SA and Netmedia Group
Assuming the 90 days trading horizon Boiron SA is expected to generate 0.42 times more return on investment than Netmedia Group. However, Boiron SA is 2.37 times less risky than Netmedia Group. It trades about 0.0 of its potential returns per unit of risk. Netmedia Group SA is currently generating about -0.05 per unit of risk. If you would invest 2,986 in Boiron SA on August 31, 2024 and sell it today you would lose (236.00) from holding Boiron SA or give up 7.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boiron SA vs. Netmedia Group SA
Performance |
| Timeline |
| Boiron SA |
| Netmedia Group SA |
Boiron SA and Netmedia Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boiron SA and Netmedia Group
The main advantage of trading using opposite Boiron SA and Netmedia Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boiron SA position performs unexpectedly, Netmedia Group 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 Netmedia Group will offset losses from the drop in Netmedia Group's long position.| Boiron SA vs. Virbac SA | Boiron SA vs. Bonduelle SCA | Boiron SA vs. Biomerieux SA | Boiron SA vs. Guerbet S A |
| Netmedia Group vs. LVMH Mot Hennessy | Netmedia Group vs. LOreal SA | Netmedia Group vs. Hermes International SCA | Netmedia Group vs. Manitou BF 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |