Correlation Between Gascogne and Grard Perrier
Can any of the company-specific risk be diversified away by investing in both Gascogne and Grard Perrier 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 Gascogne and Grard Perrier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gascogne SA and Grard Perrier Industrie, you can compare the effects of market volatilities on Gascogne and Grard Perrier 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 Gascogne with a short position of Grard Perrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gascogne and Grard Perrier.
Diversification Opportunities for Gascogne and Grard Perrier
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gascogne and Grard is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gascogne SA and Grard Perrier Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grard Perrier Industrie and Gascogne 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 Gascogne SA are associated (or correlated) with Grard Perrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grard Perrier Industrie has no effect on the direction of Gascogne i.e., Gascogne and Grard Perrier go up and down completely randomly.
Pair Corralation between Gascogne and Grard Perrier
Assuming the 90 days trading horizon Gascogne SA is expected to under-perform the Grard Perrier. In addition to that, Gascogne is 2.12 times more volatile than Grard Perrier Industrie. It trades about -0.04 of its total potential returns per unit of risk. Grard Perrier Industrie is currently generating about -0.01 per unit of volatility. If you would invest 8,700 in Grard Perrier Industrie on December 10, 2024 and sell it today you would lose (160.00) from holding Grard Perrier Industrie or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.06% |
| Values | Daily Returns |
Gascogne SA vs. Grard Perrier Industrie
Performance |
| Timeline |
| Gascogne SA |
| Grard Perrier Industrie |
Gascogne and Grard Perrier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gascogne and Grard Perrier
The main advantage of trading using opposite Gascogne and Grard Perrier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gascogne position performs unexpectedly, Grard Perrier 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 Grard Perrier will offset losses from the drop in Grard Perrier's long position.The idea behind Gascogne SA and Grard Perrier Industrie 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.| Grard Perrier vs. Thermador Groupe SA | Grard Perrier vs. Robertet SA | Grard Perrier vs. Samse SA | Grard Perrier vs. Tonnellerie Francois Freres |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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