Correlation Between Bonduelle SCA and Socit BIC
Can any of the company-specific risk be diversified away by investing in both Bonduelle SCA and Socit BIC 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 Socit BIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonduelle SCA and Socit BIC SA, you can compare the effects of market volatilities on Bonduelle SCA and Socit BIC 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 Socit BIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonduelle SCA and Socit BIC.
Diversification Opportunities for Bonduelle SCA and Socit BIC
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bonduelle and Socit is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bonduelle SCA and Socit BIC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit BIC SA 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 Socit BIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit BIC SA has no effect on the direction of Bonduelle SCA i.e., Bonduelle SCA and Socit BIC go up and down completely randomly.
Pair Corralation between Bonduelle SCA and Socit BIC
Assuming the 90 days trading horizon Bonduelle SCA is expected to under-perform the Socit BIC. In addition to that, Bonduelle SCA is 1.15 times more volatile than Socit BIC SA. It trades about -0.24 of its total potential returns per unit of risk. Socit BIC SA is currently generating about 0.02 per unit of volatility. If you would invest 6,340 in Socit BIC SA on November 4, 2024 and sell it today you would earn a total of 20.00 from holding Socit BIC SA or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonduelle SCA vs. Socit BIC SA
Performance |
| Timeline |
| Bonduelle SCA |
| Socit BIC SA |
Bonduelle SCA and Socit BIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonduelle SCA and Socit BIC
The main advantage of trading using opposite Bonduelle SCA and Socit BIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonduelle SCA position performs unexpectedly, Socit BIC 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 Socit BIC will offset losses from the drop in Socit BIC'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 |
| Socit BIC vs. Imerys SA | Socit BIC vs. Casino Guichard Perrachon | Socit BIC vs. SEB SA | Socit BIC vs. Mtropole Tlvision 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |