Correlation Between Barco NV and Esker SA
Can any of the company-specific risk be diversified away by investing in both Barco NV and Esker SA 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 Barco NV and Esker SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barco NV and Esker SA, you can compare the effects of market volatilities on Barco NV and Esker SA 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 Barco NV with a short position of Esker SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barco NV and Esker SA.
Diversification Opportunities for Barco NV and Esker SA
Very weak diversification
The 3 months correlation between Barco and Esker is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Barco NV and Esker SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esker SA and Barco NV 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 Barco NV are associated (or correlated) with Esker SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esker SA has no effect on the direction of Barco NV i.e., Barco NV and Esker SA go up and down completely randomly.
Pair Corralation between Barco NV and Esker SA
Assuming the 90 days trading horizon Barco NV is expected to generate 3.43 times more return on investment than Esker SA. However, Barco NV is 3.43 times more volatile than Esker SA. It trades about 0.08 of its potential returns per unit of risk. Esker SA is currently generating about 0.17 per unit of risk. If you would invest 1,042 in Barco NV on December 2, 2024 and sell it today you would earn a total of 84.00 from holding Barco NV or generate 8.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Barco NV vs. Esker SA
Performance |
Timeline |
Barco NV |
Esker SA |
Barco NV and Esker SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barco NV and Esker SA
The main advantage of trading using opposite Barco NV and Esker SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barco NV position performs unexpectedly, Esker SA 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 Esker SA will offset losses from the drop in Esker SA's long position.Barco NV vs. Kinepolis Group NV | Barco NV vs. ageas SANV | Barco NV vs. Ackermans Van Haaren | Barco NV vs. Solvay SA |
Esker SA vs. Sartorius Stedim Biotech | Esker SA vs. Lectra SA | Esker SA vs. Teleperformance SE | Esker SA vs. Trigano SA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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