Correlation Between Bollore SA and Robertet
Can any of the company-specific risk be diversified away by investing in both Bollore SA and Robertet 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 Robertet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bollore SA and Robertet SA, you can compare the effects of market volatilities on Bollore SA and Robertet 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 Robertet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bollore SA and Robertet.
Diversification Opportunities for Bollore SA and Robertet
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bollore and Robertet is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bollore SA and Robertet SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robertet 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 Robertet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robertet SA has no effect on the direction of Bollore SA i.e., Bollore SA and Robertet go up and down completely randomly.
Pair Corralation between Bollore SA and Robertet
Assuming the 90 days trading horizon Bollore SA is expected to generate 1.04 times more return on investment than Robertet. However, Bollore SA is 1.04 times more volatile than Robertet SA. It trades about 0.03 of its potential returns per unit of risk. Robertet SA is currently generating about 0.0 per unit of risk. If you would invest 499.00 in Bollore SA on November 5, 2024 and sell it today you would earn a total of 72.00 from holding Bollore SA or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bollore SA vs. Robertet SA
Performance |
| Timeline |
| Bollore SA |
| Robertet SA |
Bollore SA and Robertet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bollore SA and Robertet
The main advantage of trading using opposite Bollore SA and Robertet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bollore SA position performs unexpectedly, Robertet 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 Robertet will offset losses from the drop in Robertet's long position.| Bollore SA vs. Wendel | Bollore SA vs. Compagnie de lOdet | Bollore SA vs. Eurazeo | Bollore SA vs. Edenred SA |
| Robertet vs. Tonnellerie Francois Freres | Robertet vs. Thermador Groupe SA | Robertet vs. Neurones | Robertet vs. Sartorius Stedim Biotech |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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