Correlation Between Acheter Louer and Poujoulat

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

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

Diversification Opportunities for Acheter Louer and Poujoulat

-0.55

Correlation Coefficient

Acheter Louer  Poujoulat

Excellent diversification

The 3 months correlation between Acheter and Poujoulat is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Acheter Louer and Poujoulat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poujoulat SA and Acheter Louer 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 Acheter Louer are associated (or correlated) with Poujoulat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poujoulat SA has no effect on the direction of Acheter Louer i.e., Acheter Louer and Poujoulat go up and down completely randomly.

Pair Corralation between Acheter Louer and Poujoulat

Assuming the 90 days trading horizon Acheter Louer is expected to generate 21.76 times more return on investment than Poujoulat. However, Acheter Louer is 21.76 times more volatile than Poujoulat SA. It trades about 0.16 of its potential returns per unit of risk. Poujoulat SA is currently generating about -0.11 per unit of risk. If you would invest  0.04  in Acheter Louer on April 25, 2025 and sell it today you would earn a total of  0.02  from holding Acheter Louer or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Acheter Louer  vs.  Poujoulat SA

Acheter Louer

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Acheter Louer are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Acheter Louer reported solid returns over the last few months and may actually be approaching a breakup point.

Poujoulat SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Poujoulat SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Acheter Louer and Poujoulat

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

The idea behind Acheter Louer and Poujoulat 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 CEOs Directory module to screen CEOs from public companies around the world.