Correlation Between Imerys SA and Jacques Bogart
Can any of the company-specific risk be diversified away by investing in both Imerys SA and Jacques Bogart 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 Imerys SA and Jacques Bogart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imerys SA and Jacques Bogart SA, you can compare the effects of market volatilities on Imerys SA and Jacques Bogart 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 Imerys SA with a short position of Jacques Bogart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imerys SA and Jacques Bogart.
Diversification Opportunities for Imerys SA and Jacques Bogart
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Imerys and Jacques is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Imerys SA and Jacques Bogart SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacques Bogart SA and Imerys SA 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 Imerys SA are associated (or correlated) with Jacques Bogart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacques Bogart SA has no effect on the direction of Imerys SA i.e., Imerys SA and Jacques Bogart go up and down completely randomly.
Pair Corralation between Imerys SA and Jacques Bogart
Assuming the 90 days horizon Imerys SA is expected to generate 1.06 times more return on investment than Jacques Bogart. However, Imerys SA is 1.06 times more volatile than Jacques Bogart SA. It trades about 0.06 of its potential returns per unit of risk. Jacques Bogart SA is currently generating about -0.11 per unit of risk. If you would invest 2,806 in Imerys SA on August 31, 2024 and sell it today you would earn a total of 64.00 from holding Imerys SA or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imerys SA vs. Jacques Bogart SA
Performance |
| Timeline |
| Imerys SA |
| Jacques Bogart SA |
Imerys SA and Jacques Bogart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imerys SA and Jacques Bogart
The main advantage of trading using opposite Imerys SA and Jacques Bogart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imerys SA position performs unexpectedly, Jacques Bogart 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 Jacques Bogart will offset losses from the drop in Jacques Bogart's long position.| Imerys SA vs. Rubis SCA | Imerys SA vs. Eramet SA | Imerys SA vs. Nexity | Imerys SA vs. Compagnie de Saint Gobain |
| Jacques Bogart vs. Herige SA | Jacques Bogart vs. NRJ Group | Jacques Bogart vs. Haulotte Group SA | Jacques Bogart vs. Stef 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |