Correlation Between Jacques Bogart and ABC Arbitrage
Can any of the company-specific risk be diversified away by investing in both Jacques Bogart and ABC Arbitrage 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 Jacques Bogart and ABC Arbitrage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacques Bogart SA and ABC arbitrage SA, you can compare the effects of market volatilities on Jacques Bogart and ABC Arbitrage 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 Jacques Bogart with a short position of ABC Arbitrage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacques Bogart and ABC Arbitrage.
Diversification Opportunities for Jacques Bogart and ABC Arbitrage
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jacques and ABC is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jacques Bogart SA and ABC arbitrage SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABC arbitrage SA and Jacques Bogart 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 Jacques Bogart SA are associated (or correlated) with ABC Arbitrage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABC arbitrage SA has no effect on the direction of Jacques Bogart i.e., Jacques Bogart and ABC Arbitrage go up and down completely randomly.
Pair Corralation between Jacques Bogart and ABC Arbitrage
Assuming the 90 days trading horizon Jacques Bogart SA is expected to under-perform the ABC Arbitrage. In addition to that, Jacques Bogart is 1.67 times more volatile than ABC arbitrage SA. It trades about -0.02 of its total potential returns per unit of risk. ABC arbitrage SA is currently generating about 0.07 per unit of volatility. If you would invest 472.00 in ABC arbitrage SA on August 29, 2024 and sell it today you would earn a total of 9.00 from holding ABC arbitrage SA or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacques Bogart SA vs. ABC arbitrage SA
Performance |
| Timeline |
| Jacques Bogart SA |
| ABC arbitrage SA |
Jacques Bogart and ABC Arbitrage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacques Bogart and ABC Arbitrage
The main advantage of trading using opposite Jacques Bogart and ABC Arbitrage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacques Bogart position performs unexpectedly, ABC Arbitrage 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 ABC Arbitrage will offset losses from the drop in ABC Arbitrage's long position.| Jacques Bogart vs. Stef SA | Jacques Bogart vs. Bonduelle SCA | Jacques Bogart vs. Lisi SA | Jacques Bogart vs. Interparfums SA |
| ABC Arbitrage vs. CBO Territoria SA | ABC Arbitrage vs. Rubis SCA | ABC Arbitrage vs. Nexity | ABC Arbitrage vs. Gaztransport Technigaz SAS |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |