Correlation Between Vivendi SA and Bollor SE
Can any of the company-specific risk be diversified away by investing in both Vivendi SA and Bollor SE 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 Vivendi SA and Bollor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivendi SA and Bollor SE, you can compare the effects of market volatilities on Vivendi SA and Bollor SE 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 Vivendi SA with a short position of Bollor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivendi SA and Bollor SE.
Diversification Opportunities for Vivendi SA and Bollor SE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vivendi and Bollor is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Vivendi SA and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollor SE and Vivendi 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 Vivendi SA are associated (or correlated) with Bollor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollor SE has no effect on the direction of Vivendi SA i.e., Vivendi SA and Bollor SE go up and down completely randomly.
Pair Corralation between Vivendi SA and Bollor SE
If you would invest 603.00 in Bollor SE on October 24, 2024 and sell it today you would earn a total of 4.00 from holding Bollor SE or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Vivendi SA vs. Bollor SE
Performance |
| Timeline |
| Vivendi SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bollor SE |
Vivendi SA and Bollor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivendi SA and Bollor SE
The main advantage of trading using opposite Vivendi SA and Bollor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivendi SA position performs unexpectedly, Bollor SE 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 Bollor SE will offset losses from the drop in Bollor SE's long position.| Vivendi SA vs. Universal Music Group | Vivendi SA vs. Reservoir Media | Vivendi SA vs. Atlanta Braves Holdings, | Vivendi SA vs. Warner Music Group |
| Bollor SE vs. Universal Music Group | Bollor SE vs. Universal Media Group | Bollor SE vs. Reading International | Bollor SE vs. Warner Music Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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