Correlation Between Financiere Marjos and Claranova
Can any of the company-specific risk be diversified away by investing in both Financiere Marjos and Claranova 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 Claranova 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 Claranova SE, you can compare the effects of market volatilities on Financiere Marjos and Claranova 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 Claranova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financiere Marjos and Claranova.
Diversification Opportunities for Financiere Marjos and Claranova
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Financiere and Claranova is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Financiere Marjos SA and Claranova SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Claranova SE 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 Claranova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Claranova SE has no effect on the direction of Financiere Marjos i.e., Financiere Marjos and Claranova go up and down completely randomly.
Pair Corralation between Financiere Marjos and Claranova
Assuming the 90 days trading horizon Financiere Marjos SA is expected to generate 2.6 times more return on investment than Claranova. However, Financiere Marjos is 2.6 times more volatile than Claranova SE. It trades about 0.05 of its potential returns per unit of risk. Claranova SE is currently generating about -0.09 per unit of risk. If you would invest 9.20 in Financiere Marjos SA on August 27, 2024 and sell it today you would earn a total of 1.80 from holding Financiere Marjos SA or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financiere Marjos SA vs. Claranova SE
Performance |
| Timeline |
| Financiere Marjos |
| Claranova SE |
Financiere Marjos and Claranova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financiere Marjos and Claranova
The main advantage of trading using opposite Financiere Marjos and Claranova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financiere Marjos position performs unexpectedly, Claranova 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 Claranova will offset losses from the drop in Claranova's long position.| Financiere Marjos vs. Fiducial Office Solutions | Financiere Marjos vs. Foncire Euris SA | Financiere Marjos vs. Bernard Loisea | Financiere Marjos vs. Coheris SA |
| Claranova vs. Linedata Services SA | Claranova vs. Interparfums SA | Claranova vs. Esker SA | Claranova vs. Neurones |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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