Correlation Between Sequana Medical and Belysse Group
Can any of the company-specific risk be diversified away by investing in both Sequana Medical and Belysse Group 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 Sequana Medical and Belysse Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sequana Medical NV and Belysse Group NV, you can compare the effects of market volatilities on Sequana Medical and Belysse Group 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 Sequana Medical with a short position of Belysse Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sequana Medical and Belysse Group.
Diversification Opportunities for Sequana Medical and Belysse Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sequana and Belysse is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sequana Medical NV and Belysse Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belysse Group NV and Sequana Medical 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 Sequana Medical NV are associated (or correlated) with Belysse Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belysse Group NV has no effect on the direction of Sequana Medical i.e., Sequana Medical and Belysse Group go up and down completely randomly.
Pair Corralation between Sequana Medical and Belysse Group
Assuming the 90 days trading horizon Sequana Medical NV is expected to generate 2.6 times more return on investment than Belysse Group. However, Sequana Medical is 2.6 times more volatile than Belysse Group NV. It trades about -0.09 of its potential returns per unit of risk. Belysse Group NV is currently generating about -0.27 per unit of risk. If you would invest 90.00 in Sequana Medical NV on September 12, 2024 and sell it today you would lose (17.00) from holding Sequana Medical NV or give up 18.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.61% |
| Values | Daily Returns |
Sequana Medical NV vs. Belysse Group NV
Performance |
| Timeline |
| Sequana Medical NV |
| Belysse Group NV |
Sequana Medical and Belysse Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sequana Medical and Belysse Group
The main advantage of trading using opposite Sequana Medical and Belysse Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sequana Medical position performs unexpectedly, Belysse Group 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 Belysse Group will offset losses from the drop in Belysse Group's long position.The idea behind Sequana Medical NV and Belysse Group NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Belysse Group vs. Biocartis Group NV | Belysse Group vs. Oxurion NV | Belysse Group vs. Exmar NV | Belysse Group vs. Iep Invest |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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