Correlation Between 360 Finance and Bouygues
Can any of the company-specific risk be diversified away by investing in both 360 Finance and Bouygues 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 360 Finance and Bouygues into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 360 Finance and Bouygues SA, you can compare the effects of market volatilities on 360 Finance and Bouygues 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 360 Finance with a short position of Bouygues. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Finance and Bouygues.
Diversification Opportunities for 360 Finance and Bouygues
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 360 and Bouygues is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance and Bouygues SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bouygues SA and 360 Finance 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 360 Finance are associated (or correlated) with Bouygues. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bouygues SA has no effect on the direction of 360 Finance i.e., 360 Finance and Bouygues go up and down completely randomly.
Pair Corralation between 360 Finance and Bouygues
Given the investment horizon of 90 days 360 Finance is expected to generate 2.06 times more return on investment than Bouygues. However, 360 Finance is 2.06 times more volatile than Bouygues SA. It trades about 0.17 of its potential returns per unit of risk. Bouygues SA is currently generating about 0.06 per unit of risk. If you would invest 3,618 in 360 Finance on November 1, 2024 and sell it today you would earn a total of 601.00 from holding 360 Finance or generate 16.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
360 Finance vs. Bouygues SA
Performance |
| Timeline |
| 360 Finance |
| Bouygues SA |
360 Finance and Bouygues Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 Finance and Bouygues
The main advantage of trading using opposite 360 Finance and Bouygues positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Finance position performs unexpectedly, Bouygues 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 Bouygues will offset losses from the drop in Bouygues' long position.| 360 Finance vs. RBC Bearings Incorporated | 360 Finance vs. SBM Offshore NV | 360 Finance vs. WT Offshore | 360 Finance vs. Virgin Group Acquisition |
| Bouygues vs. NV5 Global | Bouygues vs. Matrix Service Co | Bouygues vs. MYR Group | Bouygues vs. Comfort Systems USA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |