Correlation Between Jacques Bogart and Passat Socit
Can any of the company-specific risk be diversified away by investing in both Jacques Bogart and Passat Socit 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 Passat Socit 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 Passat Socit Anonyme, you can compare the effects of market volatilities on Jacques Bogart and Passat Socit 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 Passat Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacques Bogart and Passat Socit.
Diversification Opportunities for Jacques Bogart and Passat Socit
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacques and Passat is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jacques Bogart SA and Passat Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Passat Socit Anonyme 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 Passat Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Passat Socit Anonyme has no effect on the direction of Jacques Bogart i.e., Jacques Bogart and Passat Socit go up and down completely randomly.
Pair Corralation between Jacques Bogart and Passat Socit
Assuming the 90 days trading horizon Jacques Bogart SA is expected to generate 1.13 times more return on investment than Passat Socit. However, Jacques Bogart is 1.13 times more volatile than Passat Socit Anonyme. It trades about -0.07 of its potential returns per unit of risk. Passat Socit Anonyme is currently generating about -0.08 per unit of risk. If you would invest 776.00 in Jacques Bogart SA on August 29, 2024 and sell it today you would lose (176.00) from holding Jacques Bogart SA or give up 22.68% 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. Passat Socit Anonyme
Performance |
| Timeline |
| Jacques Bogart SA |
| Passat Socit Anonyme |
Jacques Bogart and Passat Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacques Bogart and Passat Socit
The main advantage of trading using opposite Jacques Bogart and Passat Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacques Bogart position performs unexpectedly, Passat Socit 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 Passat Socit will offset losses from the drop in Passat Socit's long position.| Jacques Bogart vs. Herige SA | Jacques Bogart vs. NRJ Group | Jacques Bogart vs. Haulotte Group SA | Jacques Bogart vs. Stef SA |
| Passat Socit vs. Groupe Partouche SA | Passat Socit vs. Gevelot | Passat Socit vs. Plastiques du Val | Passat Socit vs. Trilogiq |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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