Correlation Between Cogra 48 and Groupe Sfpi
Can any of the company-specific risk be diversified away by investing in both Cogra 48 and Groupe Sfpi 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 Cogra 48 and Groupe Sfpi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogra 48 Socit and Groupe Sfpi, you can compare the effects of market volatilities on Cogra 48 and Groupe Sfpi 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 Cogra 48 with a short position of Groupe Sfpi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogra 48 and Groupe Sfpi.
Diversification Opportunities for Cogra 48 and Groupe Sfpi
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cogra and Groupe is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cogra 48 Socit and Groupe Sfpi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Sfpi and Cogra 48 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 Cogra 48 Socit are associated (or correlated) with Groupe Sfpi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Sfpi has no effect on the direction of Cogra 48 i.e., Cogra 48 and Groupe Sfpi go up and down completely randomly.
Pair Corralation between Cogra 48 and Groupe Sfpi
Assuming the 90 days trading horizon Cogra 48 Socit is expected to under-perform the Groupe Sfpi. In addition to that, Cogra 48 is 1.33 times more volatile than Groupe Sfpi. It trades about -0.06 of its total potential returns per unit of risk. Groupe Sfpi is currently generating about 0.02 per unit of volatility. If you would invest 179.00 in Groupe Sfpi on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Groupe Sfpi or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogra 48 Socit vs. Groupe Sfpi
Performance |
| Timeline |
| Cogra 48 Socit |
| Groupe Sfpi |
Cogra 48 and Groupe Sfpi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogra 48 and Groupe Sfpi
The main advantage of trading using opposite Cogra 48 and Groupe Sfpi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogra 48 position performs unexpectedly, Groupe Sfpi 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 Sfpi will offset losses from the drop in Groupe Sfpi's long position.| Cogra 48 vs. Moulinvest | Cogra 48 vs. Poujoulat SA | Cogra 48 vs. Delfingen | Cogra 48 vs. Jacquet Metal Service |
| Groupe Sfpi vs. Groupe Guillin SA | Groupe Sfpi vs. Stef SA | Groupe Sfpi vs. SA Catana Group | Groupe Sfpi vs. Jacquet Metal Service |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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