Correlation Between DIeteren Group and Smartphoto Group
Can any of the company-specific risk be diversified away by investing in both DIeteren Group and Smartphoto Group 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 DIeteren Group and Smartphoto Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DIeteren Group SA and Smartphoto Group NV, you can compare the effects of market volatilities on DIeteren Group and Smartphoto Group 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 DIeteren Group with a short position of Smartphoto Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIeteren Group and Smartphoto Group.
Diversification Opportunities for DIeteren Group and Smartphoto Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DIeteren and Smartphoto is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DIeteren Group SA and Smartphoto Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartphoto Group and DIeteren Group 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 DIeteren Group SA are associated (or correlated) with Smartphoto Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartphoto Group has no effect on the direction of DIeteren Group i.e., DIeteren Group and Smartphoto Group go up and down completely randomly.
Pair Corralation between DIeteren Group and Smartphoto Group
Assuming the 90 days trading horizon DIeteren Group SA is expected to generate 0.9 times more return on investment than Smartphoto Group. However, DIeteren Group SA is 1.11 times less risky than Smartphoto Group. It trades about 0.05 of its potential returns per unit of risk. Smartphoto Group NV is currently generating about -0.04 per unit of risk. If you would invest 11,212 in DIeteren Group SA on November 9, 2024 and sell it today you would earn a total of 5,348 from holding DIeteren Group SA or generate 47.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 58.57% |
| Values | Daily Returns |
DIeteren Group SA vs. Smartphoto Group NV
Performance |
| Timeline |
| DIeteren Group SA |
| Smartphoto Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
DIeteren Group and Smartphoto Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIeteren Group and Smartphoto Group
The main advantage of trading using opposite DIeteren Group and Smartphoto Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIeteren Group position performs unexpectedly, Smartphoto Group 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 Smartphoto Group will offset losses from the drop in Smartphoto Group's long position.| DIeteren Group vs. Ackermans Van Haaren | DIeteren Group vs. Sofina Socit Anonyme | DIeteren Group vs. Groep Brussel Lambert | DIeteren Group vs. Barco NV |
| Smartphoto Group vs. EVS Broadcast Equipment | Smartphoto Group vs. Tessenderlo | Smartphoto Group vs. Deceuninck | Smartphoto Group vs. Sipef NV |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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