Correlation Between Chargeurs and Barbara Bui

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

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

Diversification Opportunities for Chargeurs and Barbara Bui

0.18

Correlation Coefficient

Chargeurs  Barbara Bui

Average diversification

The 3 months correlation between Chargeurs and Barbara is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Chargeurs SA and Barbara Bui SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barbara Bui SA and Chargeurs 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 Chargeurs SA are associated (or correlated) with Barbara Bui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barbara Bui SA has no effect on the direction of Chargeurs i.e., Chargeurs and Barbara Bui go up and down completely randomly.

Pair Corralation between Chargeurs and Barbara Bui

Assuming the 90 days trading horizon Chargeurs SA is expected to generate 0.86 times more return on investment than Barbara Bui. However, Chargeurs SA is 1.16 times less risky than Barbara Bui. It trades about -0.05 of its potential returns per unit of risk. Barbara Bui SA is currently generating about -0.12 per unit of risk. If you would invest  1,080  in Chargeurs SA on October 15, 2024 and sell it today you would lose (84.00) from holding Chargeurs SA or give up 7.78% of portfolio value over 90 days.

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

Chargeurs SA  vs.  Barbara Bui SA

Chargeurs SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chargeurs SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Barbara Bui SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barbara Bui SA 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 forward indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Chargeurs and Barbara Bui

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

The idea behind Chargeurs SA and Barbara Bui SA 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.