Correlation Between Boiron SA and BEBO Health
Can any of the company-specific risk be diversified away by investing in both Boiron SA and BEBO Health 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 BEBO Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boiron SA and BEBO Health SA, you can compare the effects of market volatilities on Boiron SA and BEBO Health 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 BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boiron SA and BEBO Health.
Diversification Opportunities for Boiron SA and BEBO Health
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boiron and BEBO is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Boiron SA and BEBO Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEBO Health 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 BEBO Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEBO Health SA has no effect on the direction of Boiron SA i.e., Boiron SA and BEBO Health go up and down completely randomly.
Pair Corralation between Boiron SA and BEBO Health
If you would invest 244.00 in BEBO Health SA on September 2, 2024 and sell it today you would earn a total of 0.00 from holding BEBO Health SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boiron SA vs. BEBO Health SA
Performance |
| Timeline |
| Boiron SA |
| BEBO Health SA |
Boiron SA and BEBO Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boiron SA and BEBO Health
The main advantage of trading using opposite Boiron SA and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boiron SA position performs unexpectedly, BEBO Health 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 BEBO Health will offset losses from the drop in BEBO Health's long position.| Boiron SA vs. Virbac SA | Boiron SA vs. Bonduelle SCA | Boiron SA vs. Biomerieux SA | Boiron SA vs. Guerbet S A |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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