Correlation Between Unibel SA and Saint Jean
Can any of the company-specific risk be diversified away by investing in both Unibel SA and Saint Jean 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 Unibel SA and Saint Jean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unibel SA and Saint Jean Groupe, you can compare the effects of market volatilities on Unibel SA and Saint Jean 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 Unibel SA with a short position of Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unibel SA and Saint Jean.
Diversification Opportunities for Unibel SA and Saint Jean
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Unibel and Saint is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Unibel SA and Saint Jean Groupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Groupe and Unibel 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 Unibel SA are associated (or correlated) with Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Groupe has no effect on the direction of Unibel SA i.e., Unibel SA and Saint Jean go up and down completely randomly.
Pair Corralation between Unibel SA and Saint Jean
Assuming the 90 days trading horizon Unibel SA is expected to under-perform the Saint Jean. But the stock apears to be less risky and, when comparing its historical volatility, Unibel SA is 4.44 times less risky than Saint Jean. The stock trades about -0.08 of its potential returns per unit of risk. The Saint Jean Groupe is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,970 in Saint Jean Groupe on November 4, 2024 and sell it today you would earn a total of 90.00 from holding Saint Jean Groupe or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unibel SA vs. Saint Jean Groupe
Performance |
| Timeline |
| Unibel SA |
| Saint Jean Groupe |
Unibel SA and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unibel SA and Saint Jean
The main advantage of trading using opposite Unibel SA and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unibel SA position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean's long position.| Unibel SA vs. Savencia SA | Unibel SA vs. Societe LDC SA | Unibel SA vs. Robertet SA | Unibel SA vs. Malteries Franco Belges Socit |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |