Correlation Between Roche Bobois and Vente Unique
Can any of the company-specific risk be diversified away by investing in both Roche Bobois and Vente Unique 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 Roche Bobois and Vente Unique into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roche Bobois and Vente Unique, you can compare the effects of market volatilities on Roche Bobois and Vente Unique 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 Roche Bobois with a short position of Vente Unique. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roche Bobois and Vente Unique.
Diversification Opportunities for Roche Bobois and Vente Unique
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Roche and Vente is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Roche Bobois and Vente Unique in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vente Unique and Roche Bobois 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 Roche Bobois are associated (or correlated) with Vente Unique. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vente Unique has no effect on the direction of Roche Bobois i.e., Roche Bobois and Vente Unique go up and down completely randomly.
Pair Corralation between Roche Bobois and Vente Unique
Assuming the 90 days trading horizon Roche Bobois is expected to under-perform the Vente Unique. But the stock apears to be less risky and, when comparing its historical volatility, Roche Bobois is 1.35 times less risky than Vente Unique. The stock trades about -0.11 of its potential returns per unit of risk. The Vente Unique is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,537 in Vente Unique on September 1, 2024 and sell it today you would lose (247.00) from holding Vente Unique or give up 16.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roche Bobois vs. Vente Unique
Performance |
| Timeline |
| Roche Bobois |
| Vente Unique |
Roche Bobois and Vente Unique Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roche Bobois and Vente Unique
The main advantage of trading using opposite Roche Bobois and Vente Unique positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roche Bobois position performs unexpectedly, Vente Unique 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 Vente Unique will offset losses from the drop in Vente Unique's long position.| Roche Bobois vs. Vente Unique | Roche Bobois vs. Groupe Sfpi | Roche Bobois vs. Cegedim SA | Roche Bobois vs. SA Catana Group |
| Vente Unique vs. Maisons du Monde | Vente Unique vs. Claranova SE | Vente Unique vs. Solocal Group SA | Vente Unique vs. Blockchain Group 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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