Correlation Between Maisons Du and Samse SA
Can any of the company-specific risk be diversified away by investing in both Maisons Du and Samse SA 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 Samse SA 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 Samse SA, you can compare the effects of market volatilities on Maisons Du and Samse SA 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 Samse SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maisons Du and Samse SA.
Diversification Opportunities for Maisons Du and Samse SA
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maisons and Samse is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Maisons du Monde and Samse SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samse SA 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 Samse SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samse SA has no effect on the direction of Maisons Du i.e., Maisons Du and Samse SA go up and down completely randomly.
Pair Corralation between Maisons Du and Samse SA
Assuming the 90 days trading horizon Maisons du Monde is expected to generate 1.4 times more return on investment than Samse SA. However, Maisons Du is 1.4 times more volatile than Samse SA. It trades about 0.3 of its potential returns per unit of risk. Samse SA is currently generating about -0.21 per unit of risk. If you would invest 352.00 in Maisons du Monde on September 12, 2024 and sell it today you would earn a total of 65.00 from holding Maisons du Monde or generate 18.47% 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. Samse SA
Performance |
| Timeline |
| Maisons du Monde |
| Samse SA |
Maisons Du and Samse SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maisons Du and Samse SA
The main advantage of trading using opposite Maisons Du and Samse SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maisons Du position performs unexpectedly, Samse SA 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 Samse SA will offset losses from the drop in Samse SA's long position.| Maisons Du vs. SA Catana Group | Maisons Du vs. Verallia | Maisons Du vs. Thermador Groupe SA | Maisons Du vs. Vetoquinol |
| Samse SA vs. SA Catana Group | Samse SA vs. Verallia | Samse SA vs. Thermador Groupe SA | Samse SA 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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