Correlation Between Financiere Marjos and Agripower France
Can any of the company-specific risk be diversified away by investing in both Financiere Marjos and Agripower France 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 Financiere Marjos and Agripower France into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financiere Marjos SA and Agripower France Sa, you can compare the effects of market volatilities on Financiere Marjos and Agripower France 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 Financiere Marjos with a short position of Agripower France. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financiere Marjos and Agripower France.
Diversification Opportunities for Financiere Marjos and Agripower France
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Financiere and Agripower is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Financiere Marjos SA and Agripower France Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agripower France and Financiere Marjos 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 Financiere Marjos SA are associated (or correlated) with Agripower France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agripower France has no effect on the direction of Financiere Marjos i.e., Financiere Marjos and Agripower France go up and down completely randomly.
Pair Corralation between Financiere Marjos and Agripower France
Assuming the 90 days trading horizon Financiere Marjos SA is expected to generate 2.23 times more return on investment than Agripower France. However, Financiere Marjos is 2.23 times more volatile than Agripower France Sa. It trades about 0.47 of its potential returns per unit of risk. Agripower France Sa is currently generating about -0.15 per unit of risk. If you would invest 6.50 in Financiere Marjos SA on August 28, 2024 and sell it today you would earn a total of 4.50 from holding Financiere Marjos SA or generate 69.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financiere Marjos SA vs. Agripower France Sa
Performance |
| Timeline |
| Financiere Marjos |
| Agripower France |
Financiere Marjos and Agripower France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financiere Marjos and Agripower France
The main advantage of trading using opposite Financiere Marjos and Agripower France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financiere Marjos position performs unexpectedly, Agripower France 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 Agripower France will offset losses from the drop in Agripower France's long position.| Financiere Marjos vs. SA Catana Group | Financiere Marjos vs. Reworld Media | Financiere Marjos vs. Biosynex | Financiere Marjos vs. Moulinvest |
| Agripower France vs. Thermador Groupe SA | Agripower France vs. Burelle SA | Agripower France vs. Interparfums SA | Agripower France vs. Societe LDC 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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