Correlation Between Bourse Direct and Artea SA
Can any of the company-specific risk be diversified away by investing in both Bourse Direct and Artea SA 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 Bourse Direct and Artea SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bourse Direct SA and Artea SA, you can compare the effects of market volatilities on Bourse Direct and Artea SA 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 Bourse Direct with a short position of Artea SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bourse Direct and Artea SA.
Diversification Opportunities for Bourse Direct and Artea SA
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bourse and Artea is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bourse Direct SA and Artea SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artea SA and Bourse Direct 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 Bourse Direct SA are associated (or correlated) with Artea SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artea SA has no effect on the direction of Bourse Direct i.e., Bourse Direct and Artea SA go up and down completely randomly.
Pair Corralation between Bourse Direct and Artea SA
Assuming the 90 days trading horizon Bourse Direct SA is expected to generate 0.92 times more return on investment than Artea SA. However, Bourse Direct SA is 1.09 times less risky than Artea SA. It trades about -0.01 of its potential returns per unit of risk. Artea SA is currently generating about -0.1 per unit of risk. If you would invest 507.00 in Bourse Direct SA on August 29, 2024 and sell it today you would lose (67.00) from holding Bourse Direct SA or give up 13.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bourse Direct SA vs. Artea SA
Performance |
| Timeline |
| Bourse Direct SA |
| Artea SA |
Bourse Direct and Artea SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bourse Direct and Artea SA
The main advantage of trading using opposite Bourse Direct and Artea SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bourse Direct position performs unexpectedly, Artea SA 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 Artea SA will offset losses from the drop in Artea SA's long position.| Bourse Direct vs. BigBen Interactive | Bourse Direct vs. ABC arbitrage SA | Bourse Direct vs. CBO Territoria SA | Bourse Direct vs. Aurea SA |
| Artea SA vs. Bourse Direct SA | Artea SA vs. CBO Territoria SA | Artea SA vs. Altareit | Artea SA vs. Courtois 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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