Correlation Between Maisons Du and Piscines Desjoyaux
Can any of the company-specific risk be diversified away by investing in both Maisons Du and Piscines Desjoyaux 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 Maisons Du and Piscines Desjoyaux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maisons du Monde and Piscines Desjoyaux SA, you can compare the effects of market volatilities on Maisons Du and Piscines Desjoyaux 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 Maisons Du with a short position of Piscines Desjoyaux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maisons Du and Piscines Desjoyaux.
Diversification Opportunities for Maisons Du and Piscines Desjoyaux
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maisons and Piscines is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Maisons du Monde and Piscines Desjoyaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piscines Desjoyaux and Maisons Du 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 Maisons du Monde are associated (or correlated) with Piscines Desjoyaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piscines Desjoyaux has no effect on the direction of Maisons Du i.e., Maisons Du and Piscines Desjoyaux go up and down completely randomly.
Pair Corralation between Maisons Du and Piscines Desjoyaux
Assuming the 90 days trading horizon Maisons du Monde is expected to generate 2.44 times more return on investment than Piscines Desjoyaux. However, Maisons Du is 2.44 times more volatile than Piscines Desjoyaux SA. It trades about 0.03 of its potential returns per unit of risk. Piscines Desjoyaux SA is currently generating about -0.07 per unit of risk. If you would invest 409.00 in Maisons du Monde on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Maisons du Monde or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maisons du Monde vs. Piscines Desjoyaux SA
Performance |
| Timeline |
| Maisons du Monde |
| Piscines Desjoyaux |
Maisons Du and Piscines Desjoyaux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maisons Du and Piscines Desjoyaux
The main advantage of trading using opposite Maisons Du and Piscines Desjoyaux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maisons Du position performs unexpectedly, Piscines Desjoyaux 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 Piscines Desjoyaux will offset losses from the drop in Piscines Desjoyaux's long position.| Maisons Du vs. SA Catana Group | Maisons Du vs. Verallia | Maisons Du vs. Thermador Groupe SA | Maisons Du vs. Vetoquinol |
| Piscines Desjoyaux vs. SA Catana Group | Piscines Desjoyaux vs. Verallia | Piscines Desjoyaux vs. Thermador Groupe SA | Piscines Desjoyaux vs. Maisons du Monde |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |