Correlation Between Burelle SA and Robertet
Can any of the company-specific risk be diversified away by investing in both Burelle SA and Robertet 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 Robertet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burelle SA and Robertet SA, you can compare the effects of market volatilities on Burelle SA and Robertet 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 Robertet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burelle SA and Robertet.
Diversification Opportunities for Burelle SA and Robertet
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Burelle and Robertet is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Burelle SA and Robertet SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robertet SA 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 Robertet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robertet SA has no effect on the direction of Burelle SA i.e., Burelle SA and Robertet go up and down completely randomly.
Pair Corralation between Burelle SA and Robertet
Assuming the 90 days trading horizon Burelle SA is expected to generate 1.74 times more return on investment than Robertet. However, Burelle SA is 1.74 times more volatile than Robertet SA. It trades about -0.03 of its potential returns per unit of risk. Robertet SA is currently generating about -0.2 per unit of risk. If you would invest 32,800 in Burelle SA on October 26, 2024 and sell it today you would lose (700.00) from holding Burelle SA or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burelle SA vs. Robertet SA
Performance |
| Timeline |
| Burelle SA |
| Robertet SA |
Burelle SA and Robertet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burelle SA and Robertet
The main advantage of trading using opposite Burelle SA and Robertet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burelle SA position performs unexpectedly, Robertet 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 Robertet will offset losses from the drop in Robertet's long position.| Burelle SA vs. Savencia SA | Burelle SA vs. Compagnie de lOdet | Burelle SA vs. Akwel SA | Burelle SA vs. Wendel |
| Robertet vs. Tonnellerie Francois Freres | Robertet vs. Thermador Groupe SA | Robertet vs. Neurones | Robertet vs. Sartorius Stedim Biotech |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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