Correlation Between Deceuninck and Jensen
Can any of the company-specific risk be diversified away by investing in both Deceuninck and Jensen 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 Deceuninck and Jensen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deceuninck and Jensen Group, you can compare the effects of market volatilities on Deceuninck and Jensen 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 Deceuninck with a short position of Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deceuninck and Jensen.
Diversification Opportunities for Deceuninck and Jensen
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Deceuninck and Jensen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Deceuninck and Jensen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Group and Deceuninck 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 Deceuninck are associated (or correlated) with Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Group has no effect on the direction of Deceuninck i.e., Deceuninck and Jensen go up and down completely randomly.
Pair Corralation between Deceuninck and Jensen
Assuming the 90 days trading horizon Deceuninck is expected to under-perform the Jensen. But the stock apears to be less risky and, when comparing its historical volatility, Deceuninck is 1.81 times less risky than Jensen. The stock trades about -0.08 of its potential returns per unit of risk. The Jensen Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 4,310 in Jensen Group on September 12, 2024 and sell it today you would lose (60.00) from holding Jensen Group or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deceuninck vs. Jensen Group
Performance |
| Timeline |
| Deceuninck |
| Jensen Group |
Deceuninck and Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deceuninck and Jensen
The main advantage of trading using opposite Deceuninck and Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deceuninck position performs unexpectedly, Jensen 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 Jensen will offset losses from the drop in Jensen's long position.| Deceuninck vs. NV Bekaert SA | Deceuninck vs. Tessenderlo | Deceuninck vs. Barco NV | Deceuninck vs. EVS Broadcast Equipment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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