Correlation Between Jacques Bogart and La Savonnerie

Can any of the company-specific risk be diversified away by investing in both Jacques Bogart and La Savonnerie 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 La Savonnerie 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 La Savonnerie de, you can compare the effects of market volatilities on Jacques Bogart and La Savonnerie 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 La Savonnerie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacques Bogart and La Savonnerie.

Diversification Opportunities for Jacques Bogart and La Savonnerie

0.14

Correlation Coefficient

Jacques Bogart  La Savonnerie

Average diversification

The 3 months correlation between Jacques and MLSDN is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jacques Bogart SA and La Savonnerie de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Savonnerie de 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 La Savonnerie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Savonnerie de has no effect on the direction of Jacques Bogart i.e., Jacques Bogart and La Savonnerie go up and down completely randomly.

Pair Corralation between Jacques Bogart and La Savonnerie

Assuming the 90 days trading horizon Jacques Bogart is expected to generate 9.09 times less return on investment than La Savonnerie. But when comparing it to its historical volatility, Jacques Bogart SA is 1.43 times less risky than La Savonnerie. It trades about 0.0 of its potential returns per unit of risk. La Savonnerie de is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,680  in La Savonnerie de on December 30, 2024 and sell it today you would lose (20.00) from holding La Savonnerie de or give up 0.75% of portfolio value over 90 days.

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

Jacques Bogart SA  vs.  La Savonnerie de

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.

La Savonnerie de

Risk-Adjusted Performance

Very Weak

Over the last 90 days La Savonnerie de has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, La Savonnerie is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Jacques Bogart and La Savonnerie

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

The idea behind Jacques Bogart SA and La Savonnerie de 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.