Correlation Between Spineguard and Financiere Hoche

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

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

Diversification Opportunities for Spineguard and Financiere Hoche

0.0

Correlation Coefficient

Spineguard  Financiere Hoche

Pay attention - limited upside

The 3 months correlation between Spineguard and Financiere is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spineguard and Financiere Hoche Bains Les Bai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiere Hoche Bains and Spineguard 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 Spineguard are associated (or correlated) with Financiere Hoche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiere Hoche Bains has no effect on the direction of Spineguard i.e., Spineguard and Financiere Hoche go up and down completely randomly.

Pair Corralation between Spineguard and Financiere Hoche

If you would invest (100.00) in Financiere Hoche Bains Les Bains on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Financiere Hoche Bains Les Bains or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Spineguard  vs.  Financiere Hoche Bains Les Bai

Spineguard

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spineguard 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.

Financiere Hoche Bains

Risk-Adjusted Performance

Good

Over the last 90 days Financiere Hoche Bains Les Bains has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Financiere Hoche is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Spineguard and Financiere Hoche

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

The idea behind Spineguard and Financiere Hoche Bains Les Bains 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.