Correlation Between Bolloré SE and Vivendi SA
Can any of the company-specific risk be diversified away by investing in both Bolloré SE and Vivendi SA 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 Vivendi SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bollor SE and Vivendi SA, you can compare the effects of market volatilities on Bolloré SE and Vivendi SA 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 Vivendi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolloré SE and Vivendi SA.
Diversification Opportunities for Bolloré SE and Vivendi SA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bolloré and Vivendi is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bollor SE and Vivendi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi SA 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 Vivendi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SA has no effect on the direction of Bolloré SE i.e., Bolloré SE and Vivendi SA go up and down completely randomly.
Pair Corralation between Bolloré SE and Vivendi SA
Assuming the 90 days horizon Bollor SE is expected to under-perform the Vivendi SA. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bollor SE is 1.07 times less risky than Vivendi SA. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Vivendi SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,079 in Vivendi SA on November 4, 2024 and sell it today you would earn a total of 71.00 from holding Vivendi SA or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 58.7% |
| Values | Daily Returns |
Bollor SE vs. Vivendi SA
Performance |
| Timeline |
| Bolloré SE |
| Vivendi SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bolloré SE and Vivendi SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolloré SE and Vivendi SA
The main advantage of trading using opposite Bolloré SE and Vivendi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolloré SE position performs unexpectedly, Vivendi SA 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 Vivendi SA will offset losses from the drop in Vivendi SA'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 |
| Vivendi SA vs. Universal Music Group | Vivendi SA vs. Reservoir Media | Vivendi SA vs. Atlanta Braves Holdings, | Vivendi SA vs. Warner Music Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |