Correlation Between Sodexo SA and DBT SA
Can any of the company-specific risk be diversified away by investing in both Sodexo SA and DBT 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 Sodexo SA and DBT SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sodexo SA and DBT SA, you can compare the effects of market volatilities on Sodexo SA and DBT 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 Sodexo SA with a short position of DBT SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sodexo SA and DBT SA.
Diversification Opportunities for Sodexo SA and DBT SA
Very good diversification
The 3 months correlation between Sodexo and DBT is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sodexo SA and DBT SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBT SA and Sodexo SA 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 Sodexo SA are associated (or correlated) with DBT SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBT SA has no effect on the direction of Sodexo SA i.e., Sodexo SA and DBT SA go up and down completely randomly.
Pair Corralation between Sodexo SA and DBT SA
Assuming the 90 days horizon Sodexo SA is expected to under-perform the DBT SA. But the stock apears to be less risky and, when comparing its historical volatility, Sodexo SA is 5.99 times less risky than DBT SA. The stock trades about -0.06 of its potential returns per unit of risk. The DBT SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 50.00 in DBT SA on September 1, 2024 and sell it today you would lose (2.00) from holding DBT SA or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sodexo SA vs. DBT SA
Performance |
| Timeline |
| Sodexo SA |
| DBT SA |
Sodexo SA and DBT SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sodexo SA and DBT SA
The main advantage of trading using opposite Sodexo SA and DBT SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sodexo SA position performs unexpectedly, DBT 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 DBT SA will offset losses from the drop in DBT SA's long position.| Sodexo SA vs. Accor S A | Sodexo SA vs. Publicis Groupe SA | Sodexo SA vs. Legrand SA | Sodexo SA vs. Pernod Ricard 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |