Correlation Between Able View and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both Able View and Publicis Groupe 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 Able View and Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Able View Global and Publicis Groupe SA, you can compare the effects of market volatilities on Able View and Publicis Groupe 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 Able View with a short position of Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Able View and Publicis Groupe.
Diversification Opportunities for Able View and Publicis Groupe
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Able and Publicis is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Able View Global and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe SA and Able View 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 Able View Global are associated (or correlated) with Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of Able View i.e., Able View and Publicis Groupe go up and down completely randomly.
Pair Corralation between Able View and Publicis Groupe
If you would invest 1.11 in Able View Global on September 12, 2024 and sell it today you would earn a total of 0.21 from holding Able View Global or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 12.5% |
| Values | Daily Returns |
Able View Global vs. Publicis Groupe SA
Performance |
| Timeline |
| Able View Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Publicis Groupe SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Able View and Publicis Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Able View and Publicis Groupe
The main advantage of trading using opposite Able View and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Able View position performs unexpectedly, Publicis Groupe 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 Publicis Groupe will offset losses from the drop in Publicis Groupe's long position.| Able View vs. Ziff Davis | Able View vs. Haoxi Health Technology | Able View vs. Interpublic Group of | Able View vs. Omnicom Group |
| Publicis Groupe vs. SwissCom AG | Publicis Groupe vs. Compagnie de Saint Gobain | Publicis Groupe vs. Vinci SA ADR | Publicis Groupe vs. Compagnie Generale des |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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