Correlation Between Etablissements Maurel and Haulotte Group
Can any of the company-specific risk be diversified away by investing in both Etablissements Maurel and Haulotte Group 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 Haulotte Group 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 Haulotte Group SA, you can compare the effects of market volatilities on Etablissements Maurel and Haulotte Group 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 Haulotte Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Etablissements Maurel and Haulotte Group.
Diversification Opportunities for Etablissements Maurel and Haulotte Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Etablissements and Haulotte is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Etablissements Maurel et and Haulotte Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haulotte Group SA 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 Haulotte Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haulotte Group SA has no effect on the direction of Etablissements Maurel i.e., Etablissements Maurel and Haulotte Group go up and down completely randomly.
Pair Corralation between Etablissements Maurel and Haulotte Group
Assuming the 90 days trading horizon Etablissements Maurel et is expected to under-perform the Haulotte Group. But the stock apears to be less risky and, when comparing its historical volatility, Etablissements Maurel et is 1.26 times less risky than Haulotte Group. The stock trades about -0.09 of its potential returns per unit of risk. The Haulotte Group SA is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 317.00 in Haulotte Group SA on August 29, 2024 and sell it today you would lose (51.00) from holding Haulotte Group SA or give up 16.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Etablissements Maurel et vs. Haulotte Group SA
Performance |
| Timeline |
| Etablissements Maurel |
| Haulotte Group SA |
Etablissements Maurel and Haulotte Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Etablissements Maurel and Haulotte Group
The main advantage of trading using opposite Etablissements Maurel and Haulotte Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Etablissements Maurel position performs unexpectedly, Haulotte Group 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 Haulotte Group will offset losses from the drop in Haulotte Group's long position.| Etablissements Maurel vs. Vallourec | Etablissements Maurel vs. Eramet SA | Etablissements Maurel vs. Soitec SA | Etablissements Maurel vs. Nexans SA |
| Haulotte Group vs. Manitou BF SA | Haulotte Group vs. NRJ Group | Haulotte Group vs. Etablissements Maurel et | Haulotte Group vs. Trigano 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |