Correlation Between Malteries Franco and Graines Voltz
Can any of the company-specific risk be diversified away by investing in both Malteries Franco and Graines Voltz 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 Malteries Franco and Graines Voltz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malteries Franco Belges Socit and Graines Voltz SA, you can compare the effects of market volatilities on Malteries Franco and Graines Voltz 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 Malteries Franco with a short position of Graines Voltz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malteries Franco and Graines Voltz.
Diversification Opportunities for Malteries Franco and Graines Voltz
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Malteries and Graines is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Malteries Franco Belges Socit and Graines Voltz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graines Voltz SA and Malteries Franco 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 Malteries Franco Belges Socit are associated (or correlated) with Graines Voltz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graines Voltz SA has no effect on the direction of Malteries Franco i.e., Malteries Franco and Graines Voltz go up and down completely randomly.
Pair Corralation between Malteries Franco and Graines Voltz
Assuming the 90 days trading horizon Malteries Franco Belges Socit is expected to generate 0.63 times more return on investment than Graines Voltz. However, Malteries Franco Belges Socit is 1.59 times less risky than Graines Voltz. It trades about 0.08 of its potential returns per unit of risk. Graines Voltz SA is currently generating about -0.1 per unit of risk. If you would invest 64,000 in Malteries Franco Belges Socit on September 5, 2024 and sell it today you would earn a total of 9,000 from holding Malteries Franco Belges Socit or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malteries Franco Belges Socit vs. Graines Voltz SA
Performance |
| Timeline |
| Malteries Franco Belges |
| Graines Voltz SA |
Malteries Franco and Graines Voltz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malteries Franco and Graines Voltz
The main advantage of trading using opposite Malteries Franco and Graines Voltz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malteries Franco position performs unexpectedly, Graines Voltz 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 Graines Voltz will offset losses from the drop in Graines Voltz's long position.| Malteries Franco vs. Grard Perrier Industrie | Malteries Franco vs. Robertet SA | Malteries Franco vs. Thermador Groupe SA | Malteries Franco vs. Piscines Desjoyaux SA |
| Graines Voltz vs. Jacques Bogart SA | Graines Voltz vs. Piscines Desjoyaux SA | Graines Voltz vs. Plastiques du Val | Graines Voltz vs. Robertet 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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