Correlation Between Jacques Bogart and Imerys SA
Can any of the company-specific risk be diversified away by investing in both Jacques Bogart and Imerys 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 Jacques Bogart and Imerys SA 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 Imerys SA, you can compare the effects of market volatilities on Jacques Bogart and Imerys 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 Jacques Bogart with a short position of Imerys SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacques Bogart and Imerys SA.
Diversification Opportunities for Jacques Bogart and Imerys SA
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacques and Imerys is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jacques Bogart SA and Imerys SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imerys 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 Imerys SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imerys SA has no effect on the direction of Jacques Bogart i.e., Jacques Bogart and Imerys SA go up and down completely randomly.
Pair Corralation between Jacques Bogart and Imerys SA
Assuming the 90 days trading horizon Jacques Bogart SA is expected to under-perform the Imerys SA. But the stock apears to be less risky and, when comparing its historical volatility, Jacques Bogart SA is 1.06 times less risky than Imerys SA. The stock trades about -0.11 of its potential returns per unit of risk. The Imerys SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,806 in Imerys SA on August 31, 2024 and sell it today you would earn a total of 64.00 from holding Imerys SA or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacques Bogart SA vs. Imerys SA
Performance |
| Timeline |
| Jacques Bogart SA |
| Imerys SA |
Jacques Bogart and Imerys SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacques Bogart and Imerys SA
The main advantage of trading using opposite Jacques Bogart and Imerys SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacques Bogart position performs unexpectedly, Imerys 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 Imerys SA will offset losses from the drop in Imerys SA's long position.| Jacques Bogart vs. Herige SA | Jacques Bogart vs. NRJ Group | Jacques Bogart vs. Haulotte Group SA | Jacques Bogart vs. Stef SA |
| Imerys SA vs. Rubis SCA | Imerys SA vs. Eramet SA | Imerys SA vs. Nexity | Imerys SA vs. Compagnie de Saint Gobain |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| 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 | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |