Correlation Between Piscines Desjoyaux and Compagnie

Can any of the company-specific risk be diversified away by investing in both Piscines Desjoyaux and Compagnie 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 Compagnie 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 Compagnie Du Mont Blanc, you can compare the effects of market volatilities on Piscines Desjoyaux and Compagnie 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 Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piscines Desjoyaux and Compagnie.

Diversification Opportunities for Piscines Desjoyaux and Compagnie

0.39

Correlation Coefficient

Piscines Desjoyaux  Compagnie

Weak diversification

The 3 months correlation between Piscines and Compagnie is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Piscines Desjoyaux SA and Compagnie Du Mont Blanc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Du Mont 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 Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Du Mont has no effect on the direction of Piscines Desjoyaux i.e., Piscines Desjoyaux and Compagnie go up and down completely randomly.

Pair Corralation between Piscines Desjoyaux and Compagnie

Assuming the 90 days trading horizon Piscines Desjoyaux SA is expected to generate 1.49 times more return on investment than Compagnie. However, Piscines Desjoyaux is 1.49 times more volatile than Compagnie Du Mont Blanc. It trades about 0.11 of its potential returns per unit of risk. Compagnie Du Mont Blanc is currently generating about 0.11 per unit of risk. If you would invest  1,230  in Piscines Desjoyaux SA on December 30, 2024 and sell it today you would earn a total of  150.00  from holding Piscines Desjoyaux SA or generate 12.2% return on investment over 90 days.

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

Piscines Desjoyaux SA  vs.  Compagnie Du Mont Blanc

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.

Compagnie Du Mont

Risk-Adjusted Performance

OK

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

Pair Trading with Piscines Desjoyaux and Compagnie

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

The idea behind Piscines Desjoyaux SA and Compagnie Du Mont Blanc 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.