Correlation Between Bonduelle SCA and Jacques Bogart

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

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

Diversification Opportunities for Bonduelle SCA and Jacques Bogart

0.51

Correlation Coefficient

Bonduelle SCA  Jacques Bogart

Very weak diversification

The 3 months correlation between Bonduelle and Jacques is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bonduelle SCA and Jacques Bogart SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacques Bogart SA and Bonduelle SCA 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 Bonduelle SCA are associated (or correlated) with Jacques Bogart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacques Bogart SA has no effect on the direction of Bonduelle SCA i.e., Bonduelle SCA and Jacques Bogart go up and down completely randomly.

Pair Corralation between Bonduelle SCA and Jacques Bogart

Assuming the 90 days trading horizon Bonduelle SCA is expected to under-perform the Jacques Bogart. But the stock apears to be less risky and, when comparing its historical volatility, Bonduelle SCA is 1.18 times less risky than Jacques Bogart. The stock trades about -0.06 of its potential returns per unit of risk. The Jacques Bogart SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  908.00  in Jacques Bogart SA on September 13, 2024 and sell it today you would lose (300.00) from holding Jacques Bogart SA or give up 33.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.6%
Values	Daily Returns

Bonduelle SCA  vs.  Jacques Bogart SA

Bonduelle SCA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Jacques Bogart SA

Risk-Adjusted Performance

0 of 100

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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bonduelle SCA and Jacques Bogart

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

The idea behind Bonduelle SCA and Jacques Bogart 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.