Correlation Between Dassault Systemes and KLDiscovery
Can any of the company-specific risk be diversified away by investing in both Dassault Systemes and KLDiscovery 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 Dassault Systemes and KLDiscovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dassault Systemes SE and KLDiscovery, you can compare the effects of market volatilities on Dassault Systemes and KLDiscovery 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 Dassault Systemes with a short position of KLDiscovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dassault Systemes and KLDiscovery.
Diversification Opportunities for Dassault Systemes and KLDiscovery
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dassault and KLDiscovery is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dassault Systemes SE and KLDiscovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLDiscovery and Dassault Systemes 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 Dassault Systemes SE are associated (or correlated) with KLDiscovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLDiscovery has no effect on the direction of Dassault Systemes i.e., Dassault Systemes and KLDiscovery go up and down completely randomly.
Pair Corralation between Dassault Systemes and KLDiscovery
If you would invest 3,429 in Dassault Systemes SE on September 13, 2024 and sell it today you would earn a total of 247.00 from holding Dassault Systemes SE or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Dassault Systemes SE vs. KLDiscovery
Performance |
| Timeline |
| Dassault Systemes |
| KLDiscovery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dassault Systemes and KLDiscovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dassault Systemes and KLDiscovery
The main advantage of trading using opposite Dassault Systemes and KLDiscovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dassault Systemes position performs unexpectedly, KLDiscovery 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 KLDiscovery will offset losses from the drop in KLDiscovery's long position.| Dassault Systemes vs. Sage Group PLC | Dassault Systemes vs. Xero Limited | Dassault Systemes vs. RenoWorks Software | Dassault Systemes vs. 01 Communique Laboratory |
| KLDiscovery vs. 01 Communique Laboratory | KLDiscovery vs. LifeSpeak | KLDiscovery vs. RESAAS Services | KLDiscovery vs. RenoWorks Software |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |