Correlation Between Bonduelle SCA and Eurobio Scientific
Can any of the company-specific risk be diversified away by investing in both Bonduelle SCA and Eurobio Scientific 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 Bonduelle SCA and Eurobio Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonduelle SCA and Eurobio Scientific SA, you can compare the effects of market volatilities on Bonduelle SCA and Eurobio Scientific 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 Bonduelle SCA with a short position of Eurobio Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonduelle SCA and Eurobio Scientific.
Diversification Opportunities for Bonduelle SCA and Eurobio Scientific
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bonduelle and Eurobio is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bonduelle SCA and Eurobio Scientific SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobio Scientific and Bonduelle SCA 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 Bonduelle SCA are associated (or correlated) with Eurobio Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobio Scientific has no effect on the direction of Bonduelle SCA i.e., Bonduelle SCA and Eurobio Scientific go up and down completely randomly.
Pair Corralation between Bonduelle SCA and Eurobio Scientific
Assuming the 90 days trading horizon Bonduelle SCA is expected to under-perform the Eurobio Scientific. In addition to that, Bonduelle SCA is 3.48 times more volatile than Eurobio Scientific SA. It trades about -0.23 of its total potential returns per unit of risk. Eurobio Scientific SA is currently generating about -0.04 per unit of volatility. If you would invest 2,580 in Eurobio Scientific SA on August 27, 2024 and sell it today you would lose (5.00) from holding Eurobio Scientific SA or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonduelle SCA vs. Eurobio Scientific SA
Performance |
| Timeline |
| Bonduelle SCA |
| Eurobio Scientific |
Bonduelle SCA and Eurobio Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonduelle SCA and Eurobio Scientific
The main advantage of trading using opposite Bonduelle SCA and Eurobio Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonduelle SCA position performs unexpectedly, Eurobio Scientific 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 Eurobio Scientific will offset losses from the drop in Eurobio Scientific's long position.| Bonduelle SCA vs. Socit BIC SA | Bonduelle SCA vs. Bnteau SA | Bonduelle SCA vs. Casino Guichard Perrachon | Bonduelle SCA vs. SEB SA |
| Eurobio Scientific vs. Virbac SA | Eurobio Scientific vs. Boiron SA | Eurobio Scientific vs. Bonduelle SCA | Eurobio Scientific vs. LNA Sante SA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |