Correlation Between Etablissements Maurel and Dassault Aviation
Can any of the company-specific risk be diversified away by investing in both Etablissements Maurel and Dassault Aviation 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 Etablissements Maurel and Dassault Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Etablissements Maurel et and Dassault Aviation SA, you can compare the effects of market volatilities on Etablissements Maurel and Dassault Aviation 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 Etablissements Maurel with a short position of Dassault Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Etablissements Maurel and Dassault Aviation.
Diversification Opportunities for Etablissements Maurel and Dassault Aviation
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Etablissements and Dassault is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Etablissements Maurel et and Dassault Aviation SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dassault Aviation and Etablissements Maurel 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 Etablissements Maurel et are associated (or correlated) with Dassault Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dassault Aviation has no effect on the direction of Etablissements Maurel i.e., Etablissements Maurel and Dassault Aviation go up and down completely randomly.
Pair Corralation between Etablissements Maurel and Dassault Aviation
Assuming the 90 days trading horizon Etablissements Maurel et is expected to generate 1.58 times more return on investment than Dassault Aviation. However, Etablissements Maurel is 1.58 times more volatile than Dassault Aviation SA. It trades about 0.04 of its potential returns per unit of risk. Dassault Aviation SA is currently generating about 0.03 per unit of risk. If you would invest 348.00 in Etablissements Maurel et on September 2, 2024 and sell it today you would earn a total of 153.00 from holding Etablissements Maurel et or generate 43.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Etablissements Maurel et vs. Dassault Aviation SA
Performance |
| Timeline |
| Etablissements Maurel |
| Dassault Aviation |
Etablissements Maurel and Dassault Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Etablissements Maurel and Dassault Aviation
The main advantage of trading using opposite Etablissements Maurel and Dassault Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Etablissements Maurel position performs unexpectedly, Dassault Aviation 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 Dassault Aviation will offset losses from the drop in Dassault Aviation's long position.| Etablissements Maurel vs. Vallourec | Etablissements Maurel vs. Eramet SA | Etablissements Maurel vs. Soitec SA | Etablissements Maurel vs. Nexans SA |
| Dassault Aviation vs. Derichebourg | Dassault Aviation vs. Casino Guichard Perrachon | Dassault Aviation vs. Etablissements Maurel et | Dassault Aviation vs. Manitou BF 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |