Correlation Between Boiron SA and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both Boiron SA and Corsair Gaming 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 Boiron SA and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boiron SA and Corsair Gaming, you can compare the effects of market volatilities on Boiron SA and Corsair Gaming 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 Boiron SA with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boiron SA and Corsair Gaming.
Diversification Opportunities for Boiron SA and Corsair Gaming
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boiron and Corsair is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Boiron SA and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and Boiron 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 Boiron SA are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of Boiron SA i.e., Boiron SA and Corsair Gaming go up and down completely randomly.
Pair Corralation between Boiron SA and Corsair Gaming
Assuming the 90 days horizon Boiron SA is expected to under-perform the Corsair Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Boiron SA is 4.08 times less risky than Corsair Gaming. The stock trades about -0.47 of its potential returns per unit of risk. The Corsair Gaming is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 585.00 in Corsair Gaming on August 28, 2024 and sell it today you would earn a total of 103.00 from holding Corsair Gaming or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boiron SA vs. Corsair Gaming
Performance |
| Timeline |
| Boiron SA |
| Corsair Gaming |
Boiron SA and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boiron SA and Corsair Gaming
The main advantage of trading using opposite Boiron SA and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boiron SA position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| Boiron SA vs. Pfizer Inc | Boiron SA vs. Superior Plus Corp | Boiron SA vs. Origin Agritech | Boiron SA vs. Identiv |
| Corsair Gaming vs. INSURANCE AUST GRP | Corsair Gaming vs. MINCO SILVER | Corsair Gaming vs. MAGNUM MINING EXP | Corsair Gaming vs. Selective Insurance 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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