Correlation Between Bureau Veritas and Legends Business

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Can any of the company-specific risk be diversified away by investing in both Bureau Veritas and Legends Business 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 Bureau Veritas and Legends Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bureau Veritas SA and Legends Business Grp, you can compare the effects of market volatilities on Bureau Veritas and Legends Business 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 Bureau Veritas with a short position of Legends Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bureau Veritas and Legends Business.

Diversification Opportunities for Bureau Veritas and Legends Business

BureauLegendsDiversified AwayBureauLegendsDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Bureau Veritas and Legends Business

If you would invest  2,985  in Bureau Veritas SA on November 22, 2024 and sell it today you would earn a total of  181.00  from holding Bureau Veritas SA or generate 6.06% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy51.72%
ValuesDaily Returns

Bureau Veritas SA  vs.  Legends Business Grp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5-4-3-2-10
JavaScript chart by amCharts 3.21.15BVRDF LGBS
       Timeline  
Bureau Veritas SA 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bureau Veritas SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, Bureau Veritas reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15SepNovFebMayJulJanNovFebMayJulJan2426283032
Legends Business Grp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Legends Business Grp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Legends Business is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.00010.0001050.000110.000115

Bureau Veritas and Legends Business Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.66-1.99-1.33-0.660.00.751.52.252.99 0.10.20.30.40.5
JavaScript chart by amCharts 3.21.15BVRDF LGBS
       Returns  

Pair Trading with Bureau Veritas and Legends Business

The main advantage of trading using opposite Bureau Veritas and Legends Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bureau Veritas position performs unexpectedly, Legends Business 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 Legends Business will offset losses from the drop in Legends Business' long position.
The idea behind Bureau Veritas SA and Legends Business Grp 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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