Correlation Between Jacques Bogart and Amoeba SA
Can any of the company-specific risk be diversified away by investing in both Jacques Bogart and Amoeba SA 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 Amoeba SA 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 Amoeba SA, you can compare the effects of market volatilities on Jacques Bogart and Amoeba SA 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 Amoeba SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacques Bogart and Amoeba SA.
Diversification Opportunities for Jacques Bogart and Amoeba SA
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacques and Amoeba is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jacques Bogart SA and Amoeba SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amoeba SA 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 Amoeba SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amoeba SA has no effect on the direction of Jacques Bogart i.e., Jacques Bogart and Amoeba SA go up and down completely randomly.
Pair Corralation between Jacques Bogart and Amoeba SA
Assuming the 90 days trading horizon Jacques Bogart SA is expected to under-perform the Amoeba SA. But the stock apears to be less risky and, when comparing its historical volatility, Jacques Bogart SA is 1.49 times less risky than Amoeba SA. The stock trades about -0.02 of its potential returns per unit of risk. The Amoeba SA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 51.00 in Amoeba SA on September 26, 2024 and sell it today you would earn a total of 37.00 from holding Amoeba SA or generate 72.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Jacques Bogart SA vs. Amoeba SA
Performance |
Timeline |
Jacques Bogart SA |
Amoeba SA |
Jacques Bogart and Amoeba SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jacques Bogart and Amoeba SA
The main advantage of trading using opposite Jacques Bogart and Amoeba SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacques Bogart position performs unexpectedly, Amoeba SA 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 Amoeba SA will offset losses from the drop in Amoeba SA's long position.Jacques Bogart vs. Herige SA | Jacques Bogart vs. NRJ Group | Jacques Bogart vs. Haulotte Group SA | Jacques Bogart vs. Stef SA |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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