Correlation Between Bolloré SE and CH Robinson

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

By analyzing existing cross correlation between Bollor SE and CH Robinson Worldwide, you can compare the effects of market volatilities on Bolloré SE and CH Robinson 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 Bolloré SE with a short position of CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolloré SE and CH Robinson.

Diversification Opportunities for Bolloré SE and CH Robinson

-0.06

Correlation Coefficient

Bolloré SE  CH Robinson

Good diversification

The 3 months correlation between Bolloré and CH1A is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bollor SE and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide and Bolloré SE 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 Bollor SE are associated (or correlated) with CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of Bolloré SE i.e., Bolloré SE and CH Robinson go up and down completely randomly.

Pair Corralation between Bolloré SE and CH Robinson

Assuming the 90 days horizon Bolloré SE is expected to generate 1.86 times less return on investment than CH Robinson. But when comparing it to its historical volatility, Bollor SE is 1.68 times less risky than CH Robinson. It trades about 0.03 of its potential returns per unit of risk. CH Robinson Worldwide is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  8,019  in CH Robinson Worldwide on October 11, 2024 and sell it today you would earn a total of  1,831  from holding CH Robinson Worldwide or generate 22.83% return on investment over 90 days.

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

Bollor SE  vs.  CH Robinson Worldwide

Bolloré SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bollor SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bolloré SE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

CH Robinson Worldwide

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CH Robinson Worldwide are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, CH Robinson is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bolloré SE and CH Robinson

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

The idea behind Bollor SE and CH Robinson Worldwide 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.