Correlation Between ENGlobal and Bouygues
Can any of the company-specific risk be diversified away by investing in both ENGlobal and Bouygues 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 ENGlobal and Bouygues into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENGlobal and Bouygues SA, you can compare the effects of market volatilities on ENGlobal and Bouygues 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 ENGlobal with a short position of Bouygues. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENGlobal and Bouygues.
Diversification Opportunities for ENGlobal and Bouygues
Pay attention - limited upside
The 3 months correlation between ENGlobal and Bouygues is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ENGlobal and Bouygues SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bouygues SA and ENGlobal 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 ENGlobal are associated (or correlated) with Bouygues. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bouygues SA has no effect on the direction of ENGlobal i.e., ENGlobal and Bouygues go up and down completely randomly.
Pair Corralation between ENGlobal and Bouygues
If you would invest 2,956 in Bouygues SA on November 9, 2024 and sell it today you would earn a total of 229.00 from holding Bouygues SA or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ENGlobal vs. Bouygues SA
Performance |
| Timeline |
| ENGlobal |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Bouygues SA |
ENGlobal and Bouygues Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENGlobal and Bouygues
The main advantage of trading using opposite ENGlobal and Bouygues positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENGlobal position performs unexpectedly, Bouygues 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 Bouygues will offset losses from the drop in Bouygues' long position.| ENGlobal vs. Fuel Tech | ENGlobal vs. Polar Power | ENGlobal vs. Ocean Power Technologies | ENGlobal vs. Pioneer Power Solutions |
| Bouygues vs. NV5 Global | Bouygues vs. Matrix Service Co | Bouygues vs. MYR Group | Bouygues vs. Comfort Systems USA |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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