Correlation Between Baumer SA and Fleury SA

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

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

Diversification Opportunities for Baumer SA and Fleury SA

0.35

Correlation Coefficient

Baumer SA  Fleury SA

Weak diversification

The 3 months correlation between Baumer and Fleury is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Baumer SA and Fleury SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fleury SA and Baumer SA 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 Baumer SA are associated (or correlated) with Fleury SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fleury SA has no effect on the direction of Baumer SA i.e., Baumer SA and Fleury SA go up and down completely randomly.

Pair Corralation between Baumer SA and Fleury SA

Assuming the 90 days trading horizon Baumer SA is expected to generate 1.44 times more return on investment than Fleury SA. However, Baumer SA is 1.44 times more volatile than Fleury SA. It trades about 0.23 of its potential returns per unit of risk. Fleury SA is currently generating about 0.09 per unit of risk. If you would invest  1,350  in Baumer SA on April 25, 2025 and sell it today you would earn a total of  750.00  from holding Baumer SA or generate 55.56% return on investment over 90 days.

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

Baumer SA  vs.  Fleury SA

Baumer SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Baumer SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Baumer SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Fleury SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fleury SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Fleury SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Baumer SA and Fleury SA

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

The idea behind Baumer SA and Fleury 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.