Correlation Between Bonduelle SCA and Saint Jean
Can any of the company-specific risk be diversified away by investing in both Bonduelle SCA and Saint Jean 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 Saint Jean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonduelle SCA and Saint Jean Groupe, you can compare the effects of market volatilities on Bonduelle SCA and Saint Jean 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 Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonduelle SCA and Saint Jean.
Diversification Opportunities for Bonduelle SCA and Saint Jean
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bonduelle and Saint is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bonduelle SCA and Saint Jean Groupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Groupe 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 Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Groupe has no effect on the direction of Bonduelle SCA i.e., Bonduelle SCA and Saint Jean go up and down completely randomly.
Pair Corralation between Bonduelle SCA and Saint Jean
Assuming the 90 days trading horizon Bonduelle SCA is expected to under-perform the Saint Jean. But the stock apears to be less risky and, when comparing its historical volatility, Bonduelle SCA is 1.05 times less risky than Saint Jean. The stock trades about -0.09 of its potential returns per unit of risk. The Saint Jean Groupe is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,089 in Saint Jean Groupe on September 14, 2024 and sell it today you would lose (89.00) from holding Saint Jean Groupe or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Bonduelle SCA vs. Saint Jean Groupe
Performance |
| Timeline |
| Bonduelle SCA |
| Saint Jean Groupe |
Bonduelle SCA and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonduelle SCA and Saint Jean
The main advantage of trading using opposite Bonduelle SCA and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonduelle SCA position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean'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 |
| Saint Jean vs. Stef SA | Saint Jean vs. Bonduelle SCA | Saint Jean vs. VIEL Cie socit | Saint Jean vs. Groupe Guillin 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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