Correlation Between Acanthe Dveloppement and Barbara Bui

Can any of the company-specific risk be diversified away by investing in both Acanthe Dveloppement and Barbara Bui 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 Acanthe Dveloppement and Barbara Bui into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acanthe Dveloppement and Barbara Bui SA, you can compare the effects of market volatilities on Acanthe Dveloppement and Barbara Bui 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 Acanthe Dveloppement with a short position of Barbara Bui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acanthe Dveloppement and Barbara Bui.

Diversification Opportunities for Acanthe Dveloppement and Barbara Bui

-0.36

Correlation Coefficient

Acanthe Dveloppement  Barbara Bui

Very good diversification

The 3 months correlation between Acanthe and Barbara is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Acanthe Dveloppement and Barbara Bui SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barbara Bui SA and Acanthe Dveloppement 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 Acanthe Dveloppement are associated (or correlated) with Barbara Bui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barbara Bui SA has no effect on the direction of Acanthe Dveloppement i.e., Acanthe Dveloppement and Barbara Bui go up and down completely randomly.

Pair Corralation between Acanthe Dveloppement and Barbara Bui

Assuming the 90 days trading horizon Acanthe Dveloppement is expected to generate 0.61 times more return on investment than Barbara Bui. However, Acanthe Dveloppement is 1.64 times less risky than Barbara Bui. It trades about 0.05 of its potential returns per unit of risk. Barbara Bui SA is currently generating about -0.17 per unit of risk. If you would invest  31.00  in Acanthe Dveloppement on December 30, 2024 and sell it today you would earn a total of  2.00  from holding Acanthe Dveloppement or generate 6.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Acanthe Dveloppement  vs.  Barbara Bui SA

Acanthe Dveloppement

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Acanthe Dveloppement are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Acanthe Dveloppement may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Barbara Bui SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Barbara Bui SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Acanthe Dveloppement and Barbara Bui

The main advantage of trading using opposite Acanthe Dveloppement and Barbara Bui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acanthe Dveloppement position performs unexpectedly, Barbara Bui 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 Barbara Bui will offset losses from the drop in Barbara Bui's long position.

The idea behind Acanthe Dveloppement and Barbara Bui SA 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.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.