Correlation Between Burelle SA and Delfingen
Can any of the company-specific risk be diversified away by investing in both Burelle SA and Delfingen 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 Burelle SA and Delfingen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burelle SA and Delfingen, you can compare the effects of market volatilities on Burelle SA and Delfingen 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 Burelle SA with a short position of Delfingen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burelle SA and Delfingen.
Diversification Opportunities for Burelle SA and Delfingen
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Burelle and Delfingen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Burelle SA and Delfingen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delfingen and Burelle SA 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 Burelle SA are associated (or correlated) with Delfingen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delfingen has no effect on the direction of Burelle SA i.e., Burelle SA and Delfingen go up and down completely randomly.
Pair Corralation between Burelle SA and Delfingen
Assuming the 90 days trading horizon Burelle SA is expected to generate 1.57 times more return on investment than Delfingen. However, Burelle SA is 1.57 times more volatile than Delfingen. It trades about 0.28 of its potential returns per unit of risk. Delfingen is currently generating about 0.4 per unit of risk. If you would invest 32,400 in Burelle SA on November 27, 2024 and sell it today you would earn a total of 4,800 from holding Burelle SA or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burelle SA vs. Delfingen
Performance |
| Timeline |
| Burelle SA |
| Delfingen |
Burelle SA and Delfingen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burelle SA and Delfingen
The main advantage of trading using opposite Burelle SA and Delfingen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burelle SA position performs unexpectedly, Delfingen 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 Delfingen will offset losses from the drop in Delfingen's long position.| Burelle SA vs. Savencia SA | Burelle SA vs. Compagnie de lOdet | Burelle SA vs. Akwel SA | Burelle SA vs. Wendel |
| Delfingen vs. Akwel SA | Delfingen vs. Groupe Guillin SA | Delfingen vs. Burelle SA | Delfingen vs. SA Catana Group |
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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