Correlation Between Ipsos SA and Bnteau SA
Can any of the company-specific risk be diversified away by investing in both Ipsos SA and Bnteau 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 Ipsos SA and Bnteau SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ipsos SA and Bnteau SA, you can compare the effects of market volatilities on Ipsos SA and Bnteau 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 Ipsos SA with a short position of Bnteau SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ipsos SA and Bnteau SA.
Diversification Opportunities for Ipsos SA and Bnteau SA
Good diversification
The 3 months correlation between Ipsos and Bnteau is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ipsos SA and Bnteau SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bnteau SA and Ipsos 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 Ipsos SA are associated (or correlated) with Bnteau SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bnteau SA has no effect on the direction of Ipsos SA i.e., Ipsos SA and Bnteau SA go up and down completely randomly.
Pair Corralation between Ipsos SA and Bnteau SA
Assuming the 90 days trading horizon Ipsos SA is expected to under-perform the Bnteau SA. But the stock apears to be less risky and, when comparing its historical volatility, Ipsos SA is 1.77 times less risky than Bnteau SA. The stock trades about -0.17 of its potential returns per unit of risk. The Bnteau SA is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 917.00 in Bnteau SA on August 29, 2024 and sell it today you would lose (154.00) from holding Bnteau SA or give up 16.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ipsos SA vs. Bnteau SA
Performance |
| Timeline |
| Ipsos SA |
| Bnteau SA |
Ipsos SA and Bnteau SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ipsos SA and Bnteau SA
The main advantage of trading using opposite Ipsos SA and Bnteau SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ipsos SA position performs unexpectedly, Bnteau 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 Bnteau SA will offset losses from the drop in Bnteau SA's long position.| Ipsos SA vs. Mtropole Tlvision SA | Ipsos SA vs. Alten SA | Ipsos SA vs. Publicis Groupe SA | Ipsos SA vs. Imerys SA |
| Bnteau SA vs. Trigano SA | Bnteau SA vs. Bonduelle SCA | Bnteau SA vs. Socit BIC SA | Bnteau SA vs. Imerys 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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