Correlation Between Bollore SA and Burelle SA
Can any of the company-specific risk be diversified away by investing in both Bollore SA and Burelle 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 Bollore SA and Burelle SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bollore SA and Burelle SA, you can compare the effects of market volatilities on Bollore SA and Burelle 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 Bollore SA with a short position of Burelle SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bollore SA and Burelle SA.
Diversification Opportunities for Bollore SA and Burelle SA
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bollore and Burelle is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bollore SA and Burelle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burelle SA and Bollore 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 Bollore SA are associated (or correlated) with Burelle SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burelle SA has no effect on the direction of Bollore SA i.e., Bollore SA and Burelle SA go up and down completely randomly.
Pair Corralation between Bollore SA and Burelle SA
Assuming the 90 days trading horizon Bollore SA is expected to under-perform the Burelle SA. But the stock apears to be less risky and, when comparing its historical volatility, Bollore SA is 1.55 times less risky than Burelle SA. The stock trades about -0.1 of its potential returns per unit of risk. The Burelle SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 32,800 in Burelle SA on October 26, 2024 and sell it today you would lose (700.00) from holding Burelle SA or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bollore SA vs. Burelle SA
Performance |
| Timeline |
| Bollore SA |
| Burelle SA |
Bollore SA and Burelle SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bollore SA and Burelle SA
The main advantage of trading using opposite Bollore SA and Burelle SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bollore SA position performs unexpectedly, Burelle 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 Burelle SA will offset losses from the drop in Burelle SA's long position.| Bollore SA vs. Vivendi SA | Bollore SA vs. Wendel | Bollore SA vs. Compagnie de lOdet | Bollore SA vs. Eurazeo |
| Burelle SA vs. Savencia SA | Burelle SA vs. Compagnie de lOdet | Burelle SA vs. Akwel SA | Burelle SA vs. Wendel |
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 Stocks Directory module to find actively traded stocks across global markets.
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