Correlation Between Bolloré SE and OverActive Media
Can any of the company-specific risk be diversified away by investing in both Bolloré SE and OverActive Media 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 Bolloré SE and OverActive Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bollor SE and OverActive Media Corp, you can compare the effects of market volatilities on Bolloré SE and OverActive Media 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 Bolloré SE with a short position of OverActive Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolloré SE and OverActive Media.
Diversification Opportunities for Bolloré SE and OverActive Media
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bolloré and OverActive is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bollor SE and OverActive Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OverActive Media Corp and Bolloré SE 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 Bollor SE are associated (or correlated) with OverActive Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OverActive Media Corp has no effect on the direction of Bolloré SE i.e., Bolloré SE and OverActive Media go up and down completely randomly.
Pair Corralation between Bolloré SE and OverActive Media
Assuming the 90 days horizon Bolloré SE is expected to generate 135.72 times less return on investment than OverActive Media. But when comparing it to its historical volatility, Bollor SE is 9.07 times less risky than OverActive Media. It trades about 0.01 of its potential returns per unit of risk. OverActive Media Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 17.00 in OverActive Media Corp on January 20, 2025 and sell it today you would earn a total of 4.00 from holding OverActive Media Corp or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bollor SE vs. OverActive Media Corp
Performance |
| Timeline |
| Bolloré SE |
| OverActive Media Corp |
Bolloré SE and OverActive Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolloré SE and OverActive Media
The main advantage of trading using opposite Bolloré SE and OverActive Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolloré SE position performs unexpectedly, OverActive Media 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 OverActive Media will offset losses from the drop in OverActive Media's long position.| Bolloré SE vs. Universal Media Group | Bolloré SE vs. Reading International | Bolloré SE vs. Warner Music Group | Bolloré SE vs. Guild Esports Plc |
| OverActive Media vs. Guild Esports Plc | OverActive Media vs. Celtic plc | OverActive Media vs. Network Media Group | OverActive Media vs. New Wave Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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