Correlation Between Maisons Du and Ferm Casino
Can any of the company-specific risk be diversified away by investing in both Maisons Du and Ferm Casino 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 Ferm Casino 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 Ferm Casino Mun, you can compare the effects of market volatilities on Maisons Du and Ferm Casino 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 Ferm Casino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maisons Du and Ferm Casino.
Diversification Opportunities for Maisons Du and Ferm Casino
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maisons and Ferm is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Maisons du Monde and Ferm Casino Mun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferm Casino Mun 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 Ferm Casino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferm Casino Mun has no effect on the direction of Maisons Du i.e., Maisons Du and Ferm Casino go up and down completely randomly.
Pair Corralation between Maisons Du and Ferm Casino
If you would invest 350.00 in Maisons du Monde on September 13, 2024 and sell it today you would earn a total of 67.00 from holding Maisons du Monde or generate 19.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maisons du Monde vs. Ferm Casino Mun
Performance |
| Timeline |
| Maisons du Monde |
| Ferm Casino Mun |
Maisons Du and Ferm Casino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maisons Du and Ferm Casino
The main advantage of trading using opposite Maisons Du and Ferm Casino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maisons Du position performs unexpectedly, Ferm Casino 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 Ferm Casino will offset losses from the drop in Ferm Casino's long position.| Maisons Du vs. SA Catana Group | Maisons Du vs. Verallia | Maisons Du vs. Thermador Groupe SA | Maisons Du vs. Vetoquinol |
| Ferm Casino vs. SA Catana Group | Ferm Casino vs. Verallia | Ferm Casino vs. Thermador Groupe SA | Ferm Casino 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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