Correlation Between Impulse Fitness and Bonduelle SCA
Can any of the company-specific risk be diversified away by investing in both Impulse Fitness and Bonduelle SCA 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 Impulse Fitness and Bonduelle SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impulse Fitness Solutions and Bonduelle SCA, you can compare the effects of market volatilities on Impulse Fitness and Bonduelle SCA 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 Impulse Fitness with a short position of Bonduelle SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Fitness and Bonduelle SCA.
Diversification Opportunities for Impulse Fitness and Bonduelle SCA
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Impulse and Bonduelle is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Fitness Solutions and Bonduelle SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonduelle SCA and Impulse Fitness 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 Impulse Fitness Solutions are associated (or correlated) with Bonduelle SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonduelle SCA has no effect on the direction of Impulse Fitness i.e., Impulse Fitness and Bonduelle SCA go up and down completely randomly.
Pair Corralation between Impulse Fitness and Bonduelle SCA
Assuming the 90 days trading horizon Impulse Fitness Solutions is expected to under-perform the Bonduelle SCA. In addition to that, Impulse Fitness is 1.36 times more volatile than Bonduelle SCA. It trades about -0.16 of its total potential returns per unit of risk. Bonduelle SCA is currently generating about -0.08 per unit of volatility. If you would invest 775.00 in Bonduelle SCA on September 3, 2024 and sell it today you would lose (162.00) from holding Bonduelle SCA or give up 20.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impulse Fitness Solutions vs. Bonduelle SCA
Performance |
| Timeline |
| Impulse Fitness Solutions |
| Bonduelle SCA |
Impulse Fitness and Bonduelle SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Fitness and Bonduelle SCA
The main advantage of trading using opposite Impulse Fitness and Bonduelle SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Fitness position performs unexpectedly, Bonduelle SCA 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 Bonduelle SCA will offset losses from the drop in Bonduelle SCA's long position.| Impulse Fitness vs. Novatech Industries SA | Impulse Fitness vs. Hoteles Bestprice SA | Impulse Fitness vs. Axway Software | Impulse Fitness vs. ZCCM Investments Holdings |
| Bonduelle SCA vs. Socit BIC SA | Bonduelle SCA vs. Bnteau SA | Bonduelle SCA vs. Casino Guichard Perrachon | Bonduelle SCA vs. SEB 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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