Correlation Between Barbara Bui and Groupe JAJ
Can any of the company-specific risk be diversified away by investing in both Barbara Bui and Groupe JAJ 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 Barbara Bui and Groupe JAJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barbara Bui SA and Groupe JAJ, you can compare the effects of market volatilities on Barbara Bui and Groupe JAJ 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 Barbara Bui with a short position of Groupe JAJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barbara Bui and Groupe JAJ.
Diversification Opportunities for Barbara Bui and Groupe JAJ
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barbara and Groupe is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Barbara Bui SA and Groupe JAJ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe JAJ and Barbara Bui 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 Barbara Bui SA are associated (or correlated) with Groupe JAJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe JAJ has no effect on the direction of Barbara Bui i.e., Barbara Bui and Groupe JAJ go up and down completely randomly.
Pair Corralation between Barbara Bui and Groupe JAJ
Assuming the 90 days trading horizon Barbara Bui SA is expected to generate 1.39 times more return on investment than Groupe JAJ. However, Barbara Bui is 1.39 times more volatile than Groupe JAJ. It trades about 0.02 of its potential returns per unit of risk. Groupe JAJ is currently generating about -0.03 per unit of risk. If you would invest 800.00 in Barbara Bui SA on August 31, 2024 and sell it today you would lose (215.00) from holding Barbara Bui SA or give up 26.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barbara Bui SA vs. Groupe JAJ
Performance |
| Timeline |
| Barbara Bui SA |
| Groupe JAJ |
Barbara Bui and Groupe JAJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barbara Bui and Groupe JAJ
The main advantage of trading using opposite Barbara Bui and Groupe JAJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barbara Bui position performs unexpectedly, Groupe JAJ 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 Groupe JAJ will offset losses from the drop in Groupe JAJ's long position.The idea behind Barbara Bui SA and Groupe JAJ pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Groupe JAJ vs. Centrale dAchat Franaise | Groupe JAJ vs. Les Htels de | Groupe JAJ vs. ST Dupont | Groupe JAJ vs. Barbara Bui 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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