Correlation Between BEBO Health and Passat Socit
Can any of the company-specific risk be diversified away by investing in both BEBO Health and Passat Socit 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 Passat Socit 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 Passat Socit Anonyme, you can compare the effects of market volatilities on BEBO Health and Passat Socit 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 Passat Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEBO Health and Passat Socit.
Diversification Opportunities for BEBO Health and Passat Socit
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BEBO and Passat is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BEBO Health SA and Passat Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Passat Socit Anonyme 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 Passat Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Passat Socit Anonyme has no effect on the direction of BEBO Health i.e., BEBO Health and Passat Socit go up and down completely randomly.
Pair Corralation between BEBO Health and Passat Socit
Assuming the 90 days trading horizon BEBO Health SA is expected to under-perform the Passat Socit. In addition to that, BEBO Health is 1.17 times more volatile than Passat Socit Anonyme. It trades about -0.07 of its total potential returns per unit of risk. Passat Socit Anonyme is currently generating about 0.01 per unit of volatility. If you would invest 497.00 in Passat Socit Anonyme on September 3, 2024 and sell it today you would lose (27.00) from holding Passat Socit Anonyme or give up 5.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.62% |
| Values | Daily Returns |
BEBO Health SA vs. Passat Socit Anonyme
Performance |
| Timeline |
| BEBO Health SA |
| Passat Socit Anonyme |
BEBO Health and Passat Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEBO Health and Passat Socit
The main advantage of trading using opposite BEBO Health and Passat Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEBO Health position performs unexpectedly, Passat Socit 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 Passat Socit will offset losses from the drop in Passat Socit's long position.| BEBO Health vs. Reworld Media | BEBO Health vs. Fill Up Media | BEBO Health vs. Innelec Multimedia | BEBO Health vs. Guandao Puer Investment |
| Passat Socit vs. Piscines Desjoyaux SA | Passat Socit vs. Claranova SE | Passat Socit vs. Trigano SA | Passat Socit vs. Chargeurs SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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