Correlation Between Barbara Bui and Prodways Group
Can any of the company-specific risk be diversified away by investing in both Barbara Bui and Prodways Group 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 Prodways Group 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 Prodways Group SA, you can compare the effects of market volatilities on Barbara Bui and Prodways Group 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 Prodways Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barbara Bui and Prodways Group.
Diversification Opportunities for Barbara Bui and Prodways Group
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barbara and Prodways is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Barbara Bui SA and Prodways Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodways Group SA 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 Prodways Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodways Group SA has no effect on the direction of Barbara Bui i.e., Barbara Bui and Prodways Group go up and down completely randomly.
Pair Corralation between Barbara Bui and Prodways Group
If you would invest 52.00 in Prodways Group SA on October 23, 2024 and sell it today you would earn a total of 5.00 from holding Prodways Group SA or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barbara Bui SA vs. Prodways Group SA
Performance |
| Timeline |
| Barbara Bui SA |
| Prodways Group SA |
Barbara Bui and Prodways Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barbara Bui and Prodways Group
The main advantage of trading using opposite Barbara Bui and Prodways Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barbara Bui position performs unexpectedly, Prodways Group 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 Prodways Group will offset losses from the drop in Prodways Group's long position.| Barbara Bui vs. ACTEOS SA | Barbara Bui vs. ST Dupont | Barbara Bui vs. Augros Cosmetic Packaging | Barbara Bui vs. BigBen Interactive |
| Prodways Group vs. Balyo SA | Prodways Group vs. Lumibird SA | Prodways Group vs. Chargeurs SA | Prodways Group vs. Figeac Aero 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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