Correlation Between Poujoulat and Onlineformapro

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

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

Diversification Opportunities for Poujoulat and Onlineformapro

-0.67

Correlation Coefficient

Poujoulat  Onlineformapro

Excellent diversification

The 3 months correlation between Poujoulat and Onlineformapro is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Poujoulat SA and Onlineformapro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onlineformapro SA and Poujoulat 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 Poujoulat SA are associated (or correlated) with Onlineformapro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onlineformapro SA has no effect on the direction of Poujoulat i.e., Poujoulat and Onlineformapro go up and down completely randomly.

Pair Corralation between Poujoulat and Onlineformapro

Assuming the 90 days trading horizon Poujoulat SA is expected to generate 0.33 times more return on investment than Onlineformapro. However, Poujoulat SA is 3.02 times less risky than Onlineformapro. It trades about 0.12 of its potential returns per unit of risk. Onlineformapro SA is currently generating about -0.27 per unit of risk. If you would invest  980.00  in Poujoulat SA on December 1, 2024 and sell it today you would earn a total of  125.00  from holding Poujoulat SA or generate 12.76% return on investment over 90 days.

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

Poujoulat SA  vs.  Onlineformapro SA

Poujoulat SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Poujoulat SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Poujoulat reported solid returns over the last few months and may actually be approaching a breakup point.

Onlineformapro SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Onlineformapro SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Poujoulat and Onlineformapro

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

The idea behind Poujoulat SA and Onlineformapro 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.