Correlation Between Belysse Group and Jensen

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

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

Diversification Opportunities for Belysse Group and Jensen

-0.04

Correlation Coefficient

Belysse Group  Jensen

Good diversification

The 3 months correlation between Belysse and Jensen is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Belysse Group NV and Jensen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Group and Belysse Group 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 Belysse Group NV are associated (or correlated) with Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Group has no effect on the direction of Belysse Group i.e., Belysse Group and Jensen go up and down completely randomly.

Pair Corralation between Belysse Group and Jensen

Assuming the 90 days trading horizon Belysse Group NV is expected to under-perform the Jensen. In addition to that, Belysse Group is 2.4 times more volatile than Jensen Group. It trades about -0.1 of its total potential returns per unit of risk. Jensen Group is currently generating about 0.13 per unit of volatility. If you would invest  4,160  in Jensen Group on December 1, 2024 and sell it today you would earn a total of  450.00  from holding Jensen Group or generate 10.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Belysse Group NV  vs.  Jensen Group

Belysse Group NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Belysse Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Jensen Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jensen Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Jensen may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Belysse Group and Jensen

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

The idea behind Belysse Group NV and Jensen Group 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .