Correlation Between Bonduelle SCA and Jacques Bogart
Can any of the company-specific risk be diversified away by investing in both Bonduelle SCA and Jacques Bogart 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 Jacques Bogart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonduelle SCA and Jacques Bogart SA, you can compare the effects of market volatilities on Bonduelle SCA and Jacques Bogart 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 Jacques Bogart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonduelle SCA and Jacques Bogart.
Diversification Opportunities for Bonduelle SCA and Jacques Bogart
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bonduelle and Jacques is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bonduelle SCA and Jacques Bogart SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacques Bogart 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 Jacques Bogart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacques Bogart SA has no effect on the direction of Bonduelle SCA i.e., Bonduelle SCA and Jacques Bogart go up and down completely randomly.
Pair Corralation between Bonduelle SCA and Jacques Bogart
Assuming the 90 days trading horizon Bonduelle SCA is expected to under-perform the Jacques Bogart. But the stock apears to be less risky and, when comparing its historical volatility, Bonduelle SCA is 1.23 times less risky than Jacques Bogart. The stock trades about -0.06 of its potential returns per unit of risk. The Jacques Bogart SA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 768.00 in Jacques Bogart SA on August 26, 2024 and sell it today you would lose (164.00) from holding Jacques Bogart SA or give up 21.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.41% |
| Values | Daily Returns |
Bonduelle SCA vs. Jacques Bogart SA
Performance |
| Timeline |
| Bonduelle SCA |
| Jacques Bogart SA |
Bonduelle SCA and Jacques Bogart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonduelle SCA and Jacques Bogart
The main advantage of trading using opposite Bonduelle SCA and Jacques Bogart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonduelle SCA position performs unexpectedly, Jacques Bogart 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 Jacques Bogart will offset losses from the drop in Jacques Bogart's long position.| Bonduelle SCA vs. LOreal SA | Bonduelle SCA vs. Sanofi SA | Bonduelle SCA vs. Air Liquide SA | Bonduelle SCA vs. AXA SA |
| Jacques Bogart vs. Stef SA | Jacques Bogart vs. Bonduelle SCA | Jacques Bogart vs. Lisi SA | Jacques Bogart vs. Interparfums 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |