Correlation Between Centrale DAchat and BEBO Health
Can any of the company-specific risk be diversified away by investing in both Centrale DAchat and BEBO Health 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 Centrale DAchat and BEBO Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centrale dAchat Franaise and BEBO Health SA, you can compare the effects of market volatilities on Centrale DAchat and BEBO Health 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 Centrale DAchat with a short position of BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrale DAchat and BEBO Health.
Diversification Opportunities for Centrale DAchat and BEBO Health
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centrale and BEBO is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Centrale dAchat Franaise and BEBO Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEBO Health SA and Centrale DAchat 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 Centrale dAchat Franaise are associated (or correlated) with BEBO Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEBO Health SA has no effect on the direction of Centrale DAchat i.e., Centrale DAchat and BEBO Health go up and down completely randomly.
Pair Corralation between Centrale DAchat and BEBO Health
Assuming the 90 days trading horizon Centrale dAchat Franaise is expected to generate 0.46 times more return on investment than BEBO Health. However, Centrale dAchat Franaise is 2.17 times less risky than BEBO Health. It trades about -0.08 of its potential returns per unit of risk. BEBO Health SA is currently generating about -0.12 per unit of risk. If you would invest 909.00 in Centrale dAchat Franaise on September 3, 2024 and sell it today you would lose (123.00) from holding Centrale dAchat Franaise or give up 13.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centrale dAchat Franaise vs. BEBO Health SA
Performance |
| Timeline |
| Centrale dAchat Franaise |
| BEBO Health SA |
Centrale DAchat and BEBO Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrale DAchat and BEBO Health
The main advantage of trading using opposite Centrale DAchat and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrale DAchat position performs unexpectedly, BEBO Health 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 BEBO Health will offset losses from the drop in BEBO Health's long position.| Centrale DAchat vs. Vente Unique | Centrale DAchat vs. Groupe Sfpi | Centrale DAchat vs. Cegedim SA | Centrale DAchat vs. SA Catana Group |
| BEBO Health vs. Reworld Media | BEBO Health vs. Fill Up Media | BEBO Health vs. Innelec Multimedia | BEBO Health vs. Guandao Puer Investment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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