Correlation Between Boiron SA and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both Boiron SA and FUYO GENERAL 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 FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boiron SA and FUYO GENERAL LEASE, you can compare the effects of market volatilities on Boiron SA and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boiron SA and FUYO GENERAL.
Diversification Opportunities for Boiron SA and FUYO GENERAL
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boiron and FUYO is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Boiron SA and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of Boiron SA i.e., Boiron SA and FUYO GENERAL go up and down completely randomly.
Pair Corralation between Boiron SA and FUYO GENERAL
Assuming the 90 days horizon Boiron SA is expected to under-perform the FUYO GENERAL. In addition to that, Boiron SA is 1.35 times more volatile than FUYO GENERAL LEASE. It trades about -0.06 of its total potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about -0.02 per unit of volatility. If you would invest 8,050 in FUYO GENERAL LEASE on December 8, 2024 and sell it today you would lose (900.00) from holding FUYO GENERAL LEASE or give up 11.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Boiron SA vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| Boiron SA |
| FUYO GENERAL LEASE |
Boiron SA and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boiron SA and FUYO GENERAL
The main advantage of trading using opposite Boiron SA and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boiron SA position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| Boiron SA vs. Salesforce | Boiron SA vs. AFRICAN MEDIA ENT | Boiron SA vs. BOS BETTER ONLINE | Boiron SA vs. Lamar Advertising |
| FUYO GENERAL vs. Spirent Communications plc | FUYO GENERAL vs. Chengdu PUTIAN Telecommunications | FUYO GENERAL vs. SBA Communications Corp | FUYO GENERAL vs. CHINA TELECOM H |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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