Correlation Between Poujoulat and Carbios
Can any of the company-specific risk be diversified away by investing in both Poujoulat and Carbios 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 Poujoulat and Carbios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poujoulat SA and Carbios, you can compare the effects of market volatilities on Poujoulat and Carbios 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 Poujoulat with a short position of Carbios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poujoulat and Carbios.
Diversification Opportunities for Poujoulat and Carbios
Poor diversification
The 3 months correlation between Poujoulat and Carbios is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Poujoulat SA and Carbios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carbios and Poujoulat 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 Poujoulat SA are associated (or correlated) with Carbios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carbios has no effect on the direction of Poujoulat i.e., Poujoulat and Carbios go up and down completely randomly.
Pair Corralation between Poujoulat and Carbios
Assuming the 90 days trading horizon Poujoulat SA is expected to generate 0.17 times more return on investment than Carbios. However, Poujoulat SA is 5.84 times less risky than Carbios. It trades about -0.13 of its potential returns per unit of risk. Carbios is currently generating about -0.14 per unit of risk. If you would invest 1,092 in Poujoulat SA on September 24, 2024 and sell it today you would lose (122.00) from holding Poujoulat SA or give up 11.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Poujoulat SA vs. Carbios
Performance |
Timeline |
Poujoulat SA |
Carbios |
Poujoulat and Carbios Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Poujoulat and Carbios
The main advantage of trading using opposite Poujoulat and Carbios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poujoulat position performs unexpectedly, Carbios 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 Carbios will offset losses from the drop in Carbios' long position.Poujoulat vs. Thermador Groupe SA | Poujoulat vs. Rubis SCA | Poujoulat vs. Vicat SA | Poujoulat vs. Trigano SA |
Carbios vs. SA Catana Group | Carbios vs. Poujoulat SA | Carbios vs. Piscines Desjoyaux SA | Carbios vs. Cogra 48 Socit |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |