Correlation Between Bolloré SE and New Wave
Can any of the company-specific risk be diversified away by investing in both Bolloré SE and New Wave 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 New Wave into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bollor SE and New Wave Holdings, you can compare the effects of market volatilities on Bolloré SE and New Wave 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 New Wave. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolloré SE and New Wave.
Diversification Opportunities for Bolloré SE and New Wave
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bolloré and New is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bollor SE and New Wave Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Wave Holdings 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 New Wave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Wave Holdings has no effect on the direction of Bolloré SE i.e., Bolloré SE and New Wave go up and down completely randomly.
Pair Corralation between Bolloré SE and New Wave
Assuming the 90 days horizon Bollor SE is expected to under-perform the New Wave. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bollor SE is 13.97 times less risky than New Wave. The pink sheet trades about -0.02 of its potential returns per unit of risk. The New Wave Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.59 in New Wave Holdings on November 4, 2024 and sell it today you would lose (2.09) from holding New Wave Holdings or give up 58.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Bollor SE vs. New Wave Holdings
Performance |
| Timeline |
| Bolloré SE |
| New Wave Holdings |
Bolloré SE and New Wave Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolloré SE and New Wave
The main advantage of trading using opposite Bolloré SE and New Wave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolloré SE position performs unexpectedly, New Wave 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 New Wave will offset losses from the drop in New Wave's long position.| Bolloré SE vs. Universal Music Group | Bolloré SE vs. Universal Media Group | Bolloré SE vs. Reading International | Bolloré SE vs. Warner Music Group |
| New Wave vs. OverActive Media Corp | New Wave vs. Network Media Group | New Wave vs. Celtic plc | New Wave vs. Guild Esports Plc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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