Correlation Between Lisi SA and Jacques Bogart
Can any of the company-specific risk be diversified away by investing in both Lisi SA and Jacques Bogart 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 Lisi SA and Jacques Bogart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lisi SA and Jacques Bogart SA, you can compare the effects of market volatilities on Lisi SA and Jacques Bogart 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 Lisi SA with a short position of Jacques Bogart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lisi SA and Jacques Bogart.
Diversification Opportunities for Lisi SA and Jacques Bogart
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lisi and Jacques is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Lisi SA and Jacques Bogart SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacques Bogart SA and Lisi SA 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 Lisi SA are associated (or correlated) with Jacques Bogart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacques Bogart SA has no effect on the direction of Lisi SA i.e., Lisi SA and Jacques Bogart go up and down completely randomly.
Pair Corralation between Lisi SA and Jacques Bogart
Assuming the 90 days trading horizon Lisi SA is expected to under-perform the Jacques Bogart. But the stock apears to be less risky and, when comparing its historical volatility, Lisi SA is 1.84 times less risky than Jacques Bogart. The stock trades about -0.25 of its potential returns per unit of risk. The Jacques Bogart SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 602.00 in Jacques Bogart SA on August 29, 2024 and sell it today you would lose (2.00) from holding Jacques Bogart SA or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lisi SA vs. Jacques Bogart SA
Performance |
| Timeline |
| Lisi SA |
| Jacques Bogart SA |
Lisi SA and Jacques Bogart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lisi SA and Jacques Bogart
The main advantage of trading using opposite Lisi SA and Jacques Bogart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lisi SA position performs unexpectedly, Jacques Bogart 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 Jacques Bogart will offset losses from the drop in Jacques Bogart's long position.The idea behind Lisi SA and Jacques Bogart SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jacques Bogart vs. Herige SA | Jacques Bogart vs. NRJ Group | Jacques Bogart vs. Haulotte Group SA | Jacques Bogart vs. Stef SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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