Correlation Between Graines Voltz and Malteries Franco
Can any of the company-specific risk be diversified away by investing in both Graines Voltz and Malteries Franco 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 Graines Voltz and Malteries Franco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graines Voltz SA and Malteries Franco Belges Socit, you can compare the effects of market volatilities on Graines Voltz and Malteries Franco 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 Graines Voltz with a short position of Malteries Franco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graines Voltz and Malteries Franco.
Diversification Opportunities for Graines Voltz and Malteries Franco
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Graines and Malteries is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Graines Voltz SA and Malteries Franco Belges Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malteries Franco Belges and Graines Voltz 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 Graines Voltz SA are associated (or correlated) with Malteries Franco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malteries Franco Belges has no effect on the direction of Graines Voltz i.e., Graines Voltz and Malteries Franco go up and down completely randomly.
Pair Corralation between Graines Voltz and Malteries Franco
Assuming the 90 days trading horizon Graines Voltz SA is expected to under-perform the Malteries Franco. In addition to that, Graines Voltz is 1.71 times more volatile than Malteries Franco Belges Socit. It trades about -0.06 of its total potential returns per unit of risk. Malteries Franco Belges Socit is currently generating about 0.06 per unit of volatility. If you would invest 57,620 in Malteries Franco Belges Socit on September 12, 2024 and sell it today you would earn a total of 15,380 from holding Malteries Franco Belges Socit or generate 26.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.26% |
| Values | Daily Returns |
Graines Voltz SA vs. Malteries Franco Belges Socit
Performance |
| Timeline |
| Graines Voltz SA |
| Malteries Franco Belges |
Graines Voltz and Malteries Franco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graines Voltz and Malteries Franco
The main advantage of trading using opposite Graines Voltz and Malteries Franco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graines Voltz position performs unexpectedly, Malteries Franco 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 Malteries Franco will offset losses from the drop in Malteries Franco's long position.| Graines Voltz vs. Jacques Bogart SA | Graines Voltz vs. Piscines Desjoyaux SA | Graines Voltz vs. Plastiques du Val | Graines Voltz vs. Robertet SA |
| Malteries Franco vs. Grard Perrier Industrie | Malteries Franco vs. Robertet SA | Malteries Franco vs. Thermador Groupe SA | Malteries Franco vs. Piscines Desjoyaux 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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