Correlation Between Haulotte Group and Financiere Marjos

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

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

Diversification Opportunities for Haulotte Group and Financiere Marjos

-0.66

Correlation Coefficient

Haulotte Group  Financiere Marjos

Excellent diversification

The 3 months correlation between Haulotte and Financiere is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Haulotte Group SA and Financiere Marjos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiere Marjos and Haulotte Group 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 Haulotte Group SA are associated (or correlated) with Financiere Marjos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiere Marjos has no effect on the direction of Haulotte Group i.e., Haulotte Group and Financiere Marjos go up and down completely randomly.

Pair Corralation between Haulotte Group and Financiere Marjos

Assuming the 90 days trading horizon Haulotte Group SA is expected to under-perform the Financiere Marjos. But the stock apears to be less risky and, when comparing its historical volatility, Haulotte Group SA is 4.83 times less risky than Financiere Marjos. The stock trades about 0.0 of its potential returns per unit of risk. The Financiere Marjos SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  7.60  in Financiere Marjos SA on October 6, 2024 and sell it today you would earn a total of  0.00  from holding Financiere Marjos SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	97.62%
Values	Daily Returns

Haulotte Group SA  vs.  Financiere Marjos SA

Haulotte Group SA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Financiere Marjos

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Financiere Marjos SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Financiere Marjos sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Haulotte Group and Financiere Marjos

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

The idea behind Haulotte Group SA and Financiere Marjos 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.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.