Correlation Between Bonduelle SCA and Biomerieux
Can any of the company-specific risk be diversified away by investing in both Bonduelle SCA and Biomerieux 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 Biomerieux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonduelle SCA and Biomerieux SA, you can compare the effects of market volatilities on Bonduelle SCA and Biomerieux 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 Biomerieux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonduelle SCA and Biomerieux.
Diversification Opportunities for Bonduelle SCA and Biomerieux
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bonduelle and Biomerieux is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bonduelle SCA and Biomerieux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomerieux 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 Biomerieux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomerieux SA has no effect on the direction of Bonduelle SCA i.e., Bonduelle SCA and Biomerieux go up and down completely randomly.
Pair Corralation between Bonduelle SCA and Biomerieux
Assuming the 90 days trading horizon Bonduelle SCA is expected to under-perform the Biomerieux. But the stock apears to be less risky and, when comparing its historical volatility, Bonduelle SCA is 1.0 times less risky than Biomerieux. The stock trades about -0.03 of its potential returns per unit of risk. The Biomerieux SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10,490 in Biomerieux SA on October 25, 2024 and sell it today you would earn a total of 790.00 from holding Biomerieux SA or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonduelle SCA vs. Biomerieux SA
Performance |
| Timeline |
| Bonduelle SCA |
| Biomerieux SA |
Bonduelle SCA and Biomerieux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonduelle SCA and Biomerieux
The main advantage of trading using opposite Bonduelle SCA and Biomerieux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonduelle SCA position performs unexpectedly, Biomerieux 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 Biomerieux will offset losses from the drop in Biomerieux'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 |
| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Eurofins Scientific SE | Biomerieux vs. Ipsen SA | Biomerieux vs. Edenred 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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