Correlation Between Boldt SA and Molinos Juan

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Can any of the company-specific risk be diversified away by investing in both Boldt SA and Molinos Juan 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 Boldt SA and Molinos Juan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boldt SA and Molinos Juan Semino, you can compare the effects of market volatilities on Boldt SA and Molinos Juan 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 Boldt SA with a short position of Molinos Juan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boldt SA and Molinos Juan.

Diversification Opportunities for Boldt SA and Molinos Juan

BoldtMolinosDiversified AwayBoldtMolinosDiversified Away100%
0.46
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Boldt and Molinos is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Boldt SA and Molinos Juan Semino in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molinos Juan Semino and Boldt 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 Boldt SA are associated (or correlated) with Molinos Juan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molinos Juan Semino has no effect on the direction of Boldt SA i.e., Boldt SA and Molinos Juan go up and down completely randomly.

Pair Corralation between Boldt SA and Molinos Juan

Assuming the 90 days trading horizon Boldt SA is expected to generate 0.78 times more return on investment than Molinos Juan. However, Boldt SA is 1.29 times less risky than Molinos Juan. It trades about 0.09 of its potential returns per unit of risk. Molinos Juan Semino is currently generating about 0.06 per unit of risk. If you would invest  685.00  in Boldt SA on November 29, 2024 and sell it today you would earn a total of  3,495  from holding Boldt SA or generate 510.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Boldt SA  vs.  Molinos Juan Semino

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -80-60-40-20020
JavaScript chart by amCharts 3.21.15BOLT SEMI
       Timeline  
Boldt SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Boldt SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFeb455055
Molinos Juan Semino 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Molinos Juan Semino has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFeb406080100120140160180

Boldt SA and Molinos Juan Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.13-2.35-1.56-0.770.00.651.311.962.62 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15BOLT SEMI
       Returns  

Pair Trading with Boldt SA and Molinos Juan

The main advantage of trading using opposite Boldt SA and Molinos Juan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boldt SA position performs unexpectedly, Molinos Juan 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 Molinos Juan will offset losses from the drop in Molinos Juan's long position.
The idea behind Boldt SA and Molinos Juan Semino pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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