Correlation Between Piscines Desjoyaux and Bassac

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

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

Diversification Opportunities for Piscines Desjoyaux and Bassac

0.56

Correlation Coefficient

Piscines Desjoyaux  Bassac

Very weak diversification

The 3 months correlation between Piscines and Bassac is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Piscines Desjoyaux SA and Bassac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bassac and Piscines Desjoyaux 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 Piscines Desjoyaux SA are associated (or correlated) with Bassac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bassac has no effect on the direction of Piscines Desjoyaux i.e., Piscines Desjoyaux and Bassac go up and down completely randomly.

Pair Corralation between Piscines Desjoyaux and Bassac

Assuming the 90 days trading horizon Piscines Desjoyaux is expected to generate 2.8 times less return on investment than Bassac. But when comparing it to its historical volatility, Piscines Desjoyaux SA is 1.4 times less risky than Bassac. It trades about 0.11 of its potential returns per unit of risk. Bassac is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  4,270  in Bassac on December 30, 2024 and sell it today you would earn a total of  1,670  from holding Bassac or generate 39.11% return on investment over 90 days.

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

Piscines Desjoyaux SA  vs.  Bassac

Piscines Desjoyaux

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Piscines Desjoyaux SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Piscines Desjoyaux may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Bassac

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bassac are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Bassac sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Piscines Desjoyaux and Bassac

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

The idea behind Piscines Desjoyaux SA and Bassac 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.

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.