Correlation Between Sofina Socit and Wallix Group
Can any of the company-specific risk be diversified away by investing in both Sofina Socit and Wallix 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 Sofina Socit and Wallix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sofina Socit Anonyme and Wallix Group SA, you can compare the effects of market volatilities on Sofina Socit and Wallix 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 Sofina Socit with a short position of Wallix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sofina Socit and Wallix Group.
Diversification Opportunities for Sofina Socit and Wallix Group
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sofina and Wallix is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sofina Socit Anonyme and Wallix Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallix Group SA and Sofina Socit 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 Sofina Socit Anonyme are associated (or correlated) with Wallix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallix Group SA has no effect on the direction of Sofina Socit i.e., Sofina Socit and Wallix Group go up and down completely randomly.
Pair Corralation between Sofina Socit and Wallix Group
Assuming the 90 days trading horizon Sofina Socit Anonyme is expected to generate 0.75 times more return on investment than Wallix Group. However, Sofina Socit Anonyme is 1.33 times less risky than Wallix Group. It trades about -0.14 of its potential returns per unit of risk. Wallix Group SA is currently generating about -0.29 per unit of risk. If you would invest 22,460 in Sofina Socit Anonyme on September 12, 2024 and sell it today you would lose (880.00) from holding Sofina Socit Anonyme or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sofina Socit Anonyme vs. Wallix Group SA
Performance |
| Timeline |
| Sofina Socit Anonyme |
| Wallix Group SA |
Sofina Socit and Wallix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sofina Socit and Wallix Group
The main advantage of trading using opposite Sofina Socit and Wallix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sofina Socit position performs unexpectedly, Wallix 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 Wallix Group will offset losses from the drop in Wallix Group's long position.| Sofina Socit vs. Retail Estates | Sofina Socit vs. Vastned Retail Belgium | Sofina Socit vs. Keyware Technologies NV | Sofina Socit vs. Ion Beam Applications |
| Wallix Group vs. Groupe Guillin SA | Wallix Group vs. Stef SA | Wallix Group vs. SA Catana Group | Wallix Group vs. Jacquet Metal Service |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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