Correlation Between Burelle SA and Exel Industries
Can any of the company-specific risk be diversified away by investing in both Burelle SA and Exel Industries 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 Exel Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burelle SA and Exel Industries, you can compare the effects of market volatilities on Burelle SA and Exel Industries 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 Exel Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burelle SA and Exel Industries.
Diversification Opportunities for Burelle SA and Exel Industries
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Burelle and Exel is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Burelle SA and Exel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exel Industries 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 Exel Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exel Industries has no effect on the direction of Burelle SA i.e., Burelle SA and Exel Industries go up and down completely randomly.
Pair Corralation between Burelle SA and Exel Industries
Assuming the 90 days trading horizon Burelle SA is expected to under-perform the Exel Industries. In addition to that, Burelle SA is 1.08 times more volatile than Exel Industries. It trades about -0.01 of its total potential returns per unit of risk. Exel Industries is currently generating about 0.02 per unit of volatility. If you would invest 4,305 in Exel Industries on August 26, 2024 and sell it today you would earn a total of 375.00 from holding Exel Industries or generate 8.71% 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. Exel Industries
Performance |
| Timeline |
| Burelle SA |
| Exel Industries |
Burelle SA and Exel Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burelle SA and Exel Industries
The main advantage of trading using opposite Burelle SA and Exel Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burelle SA position performs unexpectedly, Exel Industries 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 Exel Industries will offset losses from the drop in Exel Industries' long position.| Burelle SA vs. Savencia SA | Burelle SA vs. Compagnie de lOdet | Burelle SA vs. Akwel SA | Burelle SA vs. Wendel |
| Exel Industries vs. Manitou BF SA | Exel Industries vs. Lisi SA | Exel Industries vs. Guerbet S A | Exel Industries vs. Haulotte Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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