Correlation Between Gevelot and GEA Grenobl
Can any of the company-specific risk be diversified away by investing in both Gevelot and GEA Grenobl 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 Gevelot and GEA Grenobl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gevelot and GEA Grenobl Elect, you can compare the effects of market volatilities on Gevelot and GEA Grenobl 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 Gevelot with a short position of GEA Grenobl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gevelot and GEA Grenobl.
Diversification Opportunities for Gevelot and GEA Grenobl
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gevelot and GEA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gevelot and GEA Grenobl Elect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEA Grenobl Elect and Gevelot 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 Gevelot are associated (or correlated) with GEA Grenobl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEA Grenobl Elect has no effect on the direction of Gevelot i.e., Gevelot and GEA Grenobl go up and down completely randomly.
Pair Corralation between Gevelot and GEA Grenobl
Assuming the 90 days trading horizon Gevelot is expected to under-perform the GEA Grenobl. In addition to that, Gevelot is 1.08 times more volatile than GEA Grenobl Elect. It trades about -0.04 of its total potential returns per unit of risk. GEA Grenobl Elect is currently generating about 0.0 per unit of volatility. If you would invest 8,400 in GEA Grenobl Elect on November 28, 2024 and sell it today you would lose (50.00) from holding GEA Grenobl Elect or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gevelot vs. GEA Grenobl Elect
Performance |
| Timeline |
| Gevelot |
| GEA Grenobl Elect |
Gevelot and GEA Grenobl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gevelot and GEA Grenobl
The main advantage of trading using opposite Gevelot and GEA Grenobl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gevelot position performs unexpectedly, GEA Grenobl 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 GEA Grenobl will offset losses from the drop in GEA Grenobl's long position.| Gevelot vs. Passat Socit Anonyme | Gevelot vs. Groupe Guillin SA | Gevelot vs. Jacques Bogart SA | Gevelot vs. VIEL Cie socit |
| GEA Grenobl vs. Graines Voltz SA | GEA Grenobl vs. Linedata Services SA | GEA Grenobl vs. Gevelot | GEA Grenobl vs. Lacroix Group 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |