Correlation Between NRJ and Bnteau SA
Can any of the company-specific risk be diversified away by investing in both NRJ and Bnteau SA 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 NRJ and Bnteau SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NRJ Group and Bnteau SA, you can compare the effects of market volatilities on NRJ and Bnteau SA 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 NRJ with a short position of Bnteau SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRJ and Bnteau SA.
Diversification Opportunities for NRJ and Bnteau SA
Average diversification
The 3 months correlation between NRJ and Bnteau is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding NRJ Group and Bnteau SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bnteau SA and NRJ 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 NRJ Group are associated (or correlated) with Bnteau SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bnteau SA has no effect on the direction of NRJ i.e., NRJ and Bnteau SA go up and down completely randomly.
Pair Corralation between NRJ and Bnteau SA
Assuming the 90 days trading horizon NRJ Group is expected to generate 0.48 times more return on investment than Bnteau SA. However, NRJ Group is 2.09 times less risky than Bnteau SA. It trades about -0.06 of its potential returns per unit of risk. Bnteau SA is currently generating about -0.1 per unit of risk. If you would invest 790.00 in NRJ Group on August 31, 2024 and sell it today you would lose (94.00) from holding NRJ Group or give up 11.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NRJ Group vs. Bnteau SA
Performance |
| Timeline |
| NRJ Group |
| Bnteau SA |
NRJ and Bnteau SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRJ and Bnteau SA
The main advantage of trading using opposite NRJ and Bnteau SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRJ position performs unexpectedly, Bnteau SA 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 Bnteau SA will offset losses from the drop in Bnteau SA's long position.| NRJ vs. Television Francaise 1 | NRJ vs. Mtropole Tlvision SA | NRJ vs. Haulotte Group SA | NRJ vs. VIEL Cie socit |
| Bnteau SA vs. Trigano SA | Bnteau SA vs. Bonduelle SCA | Bnteau SA vs. Imerys SA | Bnteau SA vs. Manitou BF 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |