Correlation Between FUYO GENERAL and Boiron SA
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and Boiron SA 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 FUYO GENERAL and Boiron SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and Boiron SA, you can compare the effects of market volatilities on FUYO GENERAL and Boiron SA 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 FUYO GENERAL with a short position of Boiron SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Boiron SA.
Diversification Opportunities for FUYO GENERAL and Boiron SA
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FUYO and Boiron is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and Boiron SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boiron SA and FUYO GENERAL 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 FUYO GENERAL LEASE are associated (or correlated) with Boiron SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boiron SA has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and Boiron SA go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Boiron SA
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 0.73 times more return on investment than Boiron SA. However, FUYO GENERAL LEASE is 1.37 times less risky than Boiron SA. It trades about 0.02 of its potential returns per unit of risk. Boiron SA is currently generating about -0.01 per unit of risk. If you would invest 6,350 in FUYO GENERAL LEASE on September 4, 2024 and sell it today you would earn a total of 600.00 from holding FUYO GENERAL LEASE or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. Boiron SA
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Boiron SA |
FUYO GENERAL and Boiron SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Boiron SA
The main advantage of trading using opposite FUYO GENERAL and Boiron SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, Boiron SA 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 Boiron SA will offset losses from the drop in Boiron SA's long position.The idea behind FUYO GENERAL LEASE and Boiron 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.| Boiron SA vs. Eli Lilly and | Boiron SA vs. AbbVie Inc | Boiron SA vs. Pfizer Inc | Boiron SA vs. Superior Plus Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |