Correlation Between BEBO Health and Union Technologies
Can any of the company-specific risk be diversified away by investing in both BEBO Health and Union Technologies 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 Union Technologies 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 Union Technologies Informatique, you can compare the effects of market volatilities on BEBO Health and Union Technologies 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 Union Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEBO Health and Union Technologies.
Diversification Opportunities for BEBO Health and Union Technologies
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BEBO and Union is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BEBO Health SA and Union Technologies Informatiqu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Technologies 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 Union Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Technologies has no effect on the direction of BEBO Health i.e., BEBO Health and Union Technologies go up and down completely randomly.
Pair Corralation between BEBO Health and Union Technologies
Assuming the 90 days trading horizon BEBO Health SA is expected to generate 0.46 times more return on investment than Union Technologies. However, BEBO Health SA is 2.17 times less risky than Union Technologies. It trades about -0.12 of its potential returns per unit of risk. Union Technologies Informatique is currently generating about -0.09 per unit of risk. If you would invest 398.00 in BEBO Health SA on September 19, 2024 and sell it today you would lose (154.00) from holding BEBO Health SA or give up 38.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BEBO Health SA vs. Union Technologies Informatiqu
Performance |
| Timeline |
| BEBO Health SA |
| Union Technologies |
BEBO Health and Union Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEBO Health and Union Technologies
The main advantage of trading using opposite BEBO Health and Union Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEBO Health position performs unexpectedly, Union Technologies 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 Union Technologies will offset losses from the drop in Union Technologies' long position.| BEBO Health vs. OVH Groupe SAS | BEBO Health vs. Aramis SAS | BEBO Health vs. Neoen SA | BEBO Health vs. Technip Energies BV |
| Union Technologies vs. Linedata Services SA | Union Technologies vs. Lectra SA | Union Technologies vs. Manitou BF SA | Union Technologies vs. Ossiam Minimum Variance |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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