Correlation Between ABC Arbitrage and Groupe Guillin
Can any of the company-specific risk be diversified away by investing in both ABC Arbitrage and Groupe Guillin 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 ABC Arbitrage and Groupe Guillin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABC arbitrage SA and Groupe Guillin SA, you can compare the effects of market volatilities on ABC Arbitrage and Groupe Guillin 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 ABC Arbitrage with a short position of Groupe Guillin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABC Arbitrage and Groupe Guillin.
Diversification Opportunities for ABC Arbitrage and Groupe Guillin
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ABC and Groupe is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding ABC arbitrage SA and Groupe Guillin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Guillin SA and ABC Arbitrage 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 ABC arbitrage SA are associated (or correlated) with Groupe Guillin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Guillin SA has no effect on the direction of ABC Arbitrage i.e., ABC Arbitrage and Groupe Guillin go up and down completely randomly.
Pair Corralation between ABC Arbitrage and Groupe Guillin
Assuming the 90 days trading horizon ABC arbitrage SA is expected to under-perform the Groupe Guillin. But the stock apears to be less risky and, when comparing its historical volatility, ABC arbitrage SA is 1.25 times less risky than Groupe Guillin. The stock trades about -0.21 of its potential returns per unit of risk. The Groupe Guillin SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,730 in Groupe Guillin SA on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Groupe Guillin SA or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABC arbitrage SA vs. Groupe Guillin SA
Performance |
| Timeline |
| ABC arbitrage SA |
| Groupe Guillin SA |
ABC Arbitrage and Groupe Guillin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABC Arbitrage and Groupe Guillin
The main advantage of trading using opposite ABC Arbitrage and Groupe Guillin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABC Arbitrage position performs unexpectedly, Groupe Guillin 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 Groupe Guillin will offset losses from the drop in Groupe Guillin's long position.| ABC Arbitrage vs. CBO Territoria SA | ABC Arbitrage vs. Rubis SCA | ABC Arbitrage vs. Nexity | ABC Arbitrage vs. Gaztransport Technigaz SAS |
| Groupe Guillin vs. Robertet SA | Groupe Guillin vs. Thermador Groupe SA | Groupe Guillin vs. Grard Perrier Industrie |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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