Correlation Between Delfingen and Groupe CRIT
Can any of the company-specific risk be diversified away by investing in both Delfingen and Groupe CRIT 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 Delfingen and Groupe CRIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delfingen and Groupe CRIT SA, you can compare the effects of market volatilities on Delfingen and Groupe CRIT 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 Delfingen with a short position of Groupe CRIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delfingen and Groupe CRIT.
Diversification Opportunities for Delfingen and Groupe CRIT
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delfingen and Groupe is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Delfingen and Groupe CRIT SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe CRIT SA and Delfingen 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 Delfingen are associated (or correlated) with Groupe CRIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe CRIT SA has no effect on the direction of Delfingen i.e., Delfingen and Groupe CRIT go up and down completely randomly.
Pair Corralation between Delfingen and Groupe CRIT
Assuming the 90 days trading horizon Delfingen is expected to under-perform the Groupe CRIT. But the stock apears to be less risky and, when comparing its historical volatility, Delfingen is 1.27 times less risky than Groupe CRIT. The stock trades about -0.63 of its potential returns per unit of risk. The Groupe CRIT SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 6,700 in Groupe CRIT SA on August 29, 2024 and sell it today you would lose (200.00) from holding Groupe CRIT SA or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delfingen vs. Groupe CRIT SA
Performance |
| Timeline |
| Delfingen |
| Groupe CRIT SA |
Delfingen and Groupe CRIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delfingen and Groupe CRIT
The main advantage of trading using opposite Delfingen and Groupe CRIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delfingen position performs unexpectedly, Groupe CRIT 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 CRIT will offset losses from the drop in Groupe CRIT's long position.| Delfingen vs. Akwel SA | Delfingen vs. Groupe Guillin SA | Delfingen vs. Burelle SA | Delfingen vs. SA Catana Group |
| Groupe CRIT vs. Synergie SE | Groupe CRIT vs. Alten SA | Groupe CRIT vs. Manitou BF SA | Groupe CRIT vs. Linedata Services SA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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