Correlation Between Compagnie Financire and Boxer Retail
Can any of the company-specific risk be diversified away by investing in both Compagnie Financire and Boxer Retail 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 Compagnie Financire and Boxer Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Financire Richemont and Boxer Retail, you can compare the effects of market volatilities on Compagnie Financire and Boxer Retail 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 Compagnie Financire with a short position of Boxer Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Financire and Boxer Retail.
Diversification Opportunities for Compagnie Financire and Boxer Retail
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Compagnie and Boxer is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Financire Richemont and Boxer Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxer Retail and Compagnie Financire 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 Compagnie Financire Richemont are associated (or correlated) with Boxer Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxer Retail has no effect on the direction of Compagnie Financire i.e., Compagnie Financire and Boxer Retail go up and down completely randomly.
Pair Corralation between Compagnie Financire and Boxer Retail
Assuming the 90 days trading horizon Compagnie Financire is expected to generate 6.99 times less return on investment than Boxer Retail. But when comparing it to its historical volatility, Compagnie Financire Richemont is 2.81 times less risky than Boxer Retail. It trades about 0.09 of its potential returns per unit of risk. Boxer Retail is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 540,000 in Boxer Retail on September 23, 2024 and sell it today you would earn a total of 100,000 from holding Boxer Retail or generate 18.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 44.19% |
Values | Daily Returns |
Compagnie Financire Richemont vs. Boxer Retail
Performance |
Timeline |
Compagnie Financire |
Boxer Retail |
Compagnie Financire and Boxer Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Compagnie Financire and Boxer Retail
The main advantage of trading using opposite Compagnie Financire and Boxer Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Financire position performs unexpectedly, Boxer Retail 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 Boxer Retail will offset losses from the drop in Boxer Retail's long position.Compagnie Financire vs. Sasol Ltd Bee | Compagnie Financire vs. Growthpoint Properties | Compagnie Financire vs. AfricaRhodium ETF | Compagnie Financire vs. CoreShares Preference Share |
Boxer Retail vs. Prosus NV | Boxer Retail vs. Compagnie Financire Richemont | Boxer Retail vs. British American Tobacco | Boxer Retail vs. Anglo American PLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |