Correlation Between Burelle SA and ST Dupont
Can any of the company-specific risk be diversified away by investing in both Burelle SA and ST Dupont 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 ST Dupont into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burelle SA and ST Dupont, you can compare the effects of market volatilities on Burelle SA and ST Dupont 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 ST Dupont. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burelle SA and ST Dupont.
Diversification Opportunities for Burelle SA and ST Dupont
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Burelle and DPT is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Burelle SA and ST Dupont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ST Dupont 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 ST Dupont. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ST Dupont has no effect on the direction of Burelle SA i.e., Burelle SA and ST Dupont go up and down completely randomly.
Pair Corralation between Burelle SA and ST Dupont
Assuming the 90 days trading horizon Burelle SA is expected to under-perform the ST Dupont. But the stock apears to be less risky and, when comparing its historical volatility, Burelle SA is 1.16 times less risky than ST Dupont. The stock trades about -0.2 of its potential returns per unit of risk. The ST Dupont is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 8.40 in ST Dupont on September 12, 2024 and sell it today you would lose (0.44) from holding ST Dupont or give up 5.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burelle SA vs. ST Dupont
Performance |
| Timeline |
| Burelle SA |
| ST Dupont |
Burelle SA and ST Dupont Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burelle SA and ST Dupont
The main advantage of trading using opposite Burelle SA and ST Dupont positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burelle SA position performs unexpectedly, ST Dupont 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 ST Dupont will offset losses from the drop in ST Dupont's long position.| Burelle SA vs. Savencia SA | Burelle SA vs. Compagnie de lOdet | Burelle SA vs. Akwel SA | Burelle SA vs. Wendel |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |