Correlation Between BEBO Health and Les Hotels
Can any of the company-specific risk be diversified away by investing in both BEBO Health and Les Hotels 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 BEBO Health and Les Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEBO Health SA and Les Hotels Bav, you can compare the effects of market volatilities on BEBO Health and Les Hotels 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 BEBO Health with a short position of Les Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEBO Health and Les Hotels.
Diversification Opportunities for BEBO Health and Les Hotels
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BEBO and Les is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding BEBO Health SA and Les Hotels Bav in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Les Hotels Bav and BEBO Health 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 BEBO Health SA are associated (or correlated) with Les Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Les Hotels Bav has no effect on the direction of BEBO Health i.e., BEBO Health and Les Hotels go up and down completely randomly.
Pair Corralation between BEBO Health and Les Hotels
If you would invest 244.00 in BEBO Health SA on August 25, 2024 and sell it today you would earn a total of 0.00 from holding BEBO Health SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BEBO Health SA vs. Les Hotels Bav
Performance |
| Timeline |
| BEBO Health SA |
| Les Hotels Bav |
BEBO Health and Les Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEBO Health and Les Hotels
The main advantage of trading using opposite BEBO Health and Les Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEBO Health position performs unexpectedly, Les Hotels 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 Les Hotels will offset losses from the drop in Les Hotels' long position.| BEBO Health vs. Groupe Partouche SA | BEBO Health vs. Gevelot | BEBO Health vs. Plastiques du Val | BEBO Health vs. Trilogiq |
| Les Hotels vs. SA Catana Group | Les Hotels vs. Reworld Media | Les Hotels vs. Biosynex | Les Hotels vs. Moulinvest |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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