Correlation Between Jacques Bogart and Gevelot
Can any of the company-specific risk be diversified away by investing in both Jacques Bogart and Gevelot 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 Gevelot 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 Gevelot, you can compare the effects of market volatilities on Jacques Bogart and Gevelot 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 Gevelot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacques Bogart and Gevelot.
Diversification Opportunities for Jacques Bogart and Gevelot
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacques and Gevelot is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jacques Bogart SA and Gevelot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gevelot 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 Gevelot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gevelot has no effect on the direction of Jacques Bogart i.e., Jacques Bogart and Gevelot go up and down completely randomly.
Pair Corralation between Jacques Bogart and Gevelot
Assuming the 90 days trading horizon Jacques Bogart SA is expected to under-perform the Gevelot. In addition to that, Jacques Bogart is 1.35 times more volatile than Gevelot. It trades about -0.07 of its total potential returns per unit of risk. Gevelot is currently generating about -0.09 per unit of volatility. If you would invest 24,079 in Gevelot on August 29, 2024 and sell it today you would lose (5,179) from holding Gevelot or give up 21.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.45% |
| Values | Daily Returns |
Jacques Bogart SA vs. Gevelot
Performance |
| Timeline |
| Jacques Bogart SA |
| Gevelot |
Jacques Bogart and Gevelot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacques Bogart and Gevelot
The main advantage of trading using opposite Jacques Bogart and Gevelot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacques Bogart position performs unexpectedly, Gevelot 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 Gevelot will offset losses from the drop in Gevelot's long position.| Jacques Bogart vs. Herige SA | Jacques Bogart vs. NRJ Group | Jacques Bogart vs. Haulotte Group SA | Jacques Bogart vs. Stef SA |
| Gevelot vs. Passat Socit Anonyme | Gevelot vs. Groupe Guillin SA | Gevelot vs. Jacques Bogart SA | Gevelot vs. VIEL Cie socit |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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