Correlation Between Jacques Bogart and Piscines Desjoyaux

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

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

Diversification Opportunities for Jacques Bogart and Piscines Desjoyaux

-0.44

Correlation Coefficient

Jacques Bogart  Piscines Desjoyaux

Very good diversification

The 3 months correlation between Jacques and Piscines is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jacques Bogart SA and Piscines Desjoyaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piscines Desjoyaux and Jacques Bogart 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 Jacques Bogart SA are associated (or correlated) with Piscines Desjoyaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piscines Desjoyaux has no effect on the direction of Jacques Bogart i.e., Jacques Bogart and Piscines Desjoyaux go up and down completely randomly.

Pair Corralation between Jacques Bogart and Piscines Desjoyaux

Assuming the 90 days trading horizon Jacques Bogart SA is expected to under-perform the Piscines Desjoyaux. In addition to that, Jacques Bogart is 1.64 times more volatile than Piscines Desjoyaux SA. It trades about -0.03 of its total potential returns per unit of risk. Piscines Desjoyaux SA is currently generating about 0.25 per unit of volatility. If you would invest  1,235  in Piscines Desjoyaux SA on December 11, 2024 and sell it today you would earn a total of  345.00  from holding Piscines Desjoyaux SA or generate 27.94% return on investment over 90 days.

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

Jacques Bogart SA  vs.  Piscines Desjoyaux SA

Jacques Bogart SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jacques Bogart SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jacques Bogart is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Piscines Desjoyaux

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Piscines Desjoyaux SA are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Piscines Desjoyaux reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jacques Bogart and Piscines Desjoyaux

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

The idea behind Jacques Bogart SA and Piscines Desjoyaux 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.