Correlation Between Bharatiya Global and SANOFI S

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

By analyzing existing cross correlation between Bharatiya Global Infomedia and SANOFI S HEALTHC, you can compare the effects of market volatilities on Bharatiya Global and SANOFI S 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 Bharatiya Global with a short position of SANOFI S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bharatiya Global and SANOFI S.

Diversification Opportunities for Bharatiya Global and SANOFI S

-0.34

Correlation Coefficient

Bharatiya Global  SANOFI S

Very good diversification

The 3 months correlation between Bharatiya and SANOFI is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bharatiya Global Infomedia and SANOFI S HEALTHC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOFI S HEALTHC and Bharatiya Global 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 Bharatiya Global Infomedia are associated (or correlated) with SANOFI S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOFI S HEALTHC has no effect on the direction of Bharatiya Global i.e., Bharatiya Global and SANOFI S go up and down completely randomly.

Pair Corralation between Bharatiya Global and SANOFI S

Assuming the 90 days trading horizon Bharatiya Global Infomedia is expected to generate 2.73 times more return on investment than SANOFI S. However, Bharatiya Global is 2.73 times more volatile than SANOFI S HEALTHC. It trades about 0.47 of its potential returns per unit of risk. SANOFI S HEALTHC is currently generating about 0.1 per unit of risk. If you would invest  371.00  in Bharatiya Global Infomedia on September 29, 2024 and sell it today you would earn a total of  78.00  from holding Bharatiya Global Infomedia or generate 21.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Bharatiya Global Infomedia  vs.  SANOFI S HEALTHC

Bharatiya Global Inf

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bharatiya Global Infomedia are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental drivers, Bharatiya Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

SANOFI S HEALTHC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SANOFI S HEALTHC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SANOFI S is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Bharatiya Global and SANOFI S

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

The idea behind Bharatiya Global Infomedia and SANOFI S HEALTHC 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..