Correlation Between Groupe Guillin and ABC Arbitrage
Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and ABC Arbitrage 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 Groupe Guillin and ABC Arbitrage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Guillin SA and ABC arbitrage SA, you can compare the effects of market volatilities on Groupe Guillin and ABC Arbitrage 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 Groupe Guillin with a short position of ABC Arbitrage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and ABC Arbitrage.
Diversification Opportunities for Groupe Guillin and ABC Arbitrage
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Groupe and ABC is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and ABC arbitrage SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABC arbitrage SA and Groupe Guillin 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 Groupe Guillin SA are associated (or correlated) with ABC Arbitrage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABC arbitrage SA has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and ABC Arbitrage go up and down completely randomly.
Pair Corralation between Groupe Guillin and ABC Arbitrage
Assuming the 90 days trading horizon Groupe Guillin SA is expected to generate 1.05 times more return on investment than ABC Arbitrage. However, Groupe Guillin is 1.05 times more volatile than ABC arbitrage SA. It trades about 0.02 of its potential returns per unit of risk. ABC arbitrage SA is currently generating about -0.02 per unit of risk. If you would invest 2,631 in Groupe Guillin SA on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Groupe Guillin SA or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Guillin SA vs. ABC arbitrage SA
Performance |
| Timeline |
| Groupe Guillin SA |
| ABC arbitrage SA |
Groupe Guillin and ABC Arbitrage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Guillin and ABC Arbitrage
The main advantage of trading using opposite Groupe Guillin and ABC Arbitrage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Guillin position performs unexpectedly, ABC Arbitrage 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 ABC Arbitrage will offset losses from the drop in ABC Arbitrage's long position.| Groupe Guillin vs. Robertet SA | Groupe Guillin vs. Thermador Groupe SA | Groupe Guillin vs. Grard Perrier Industrie |
| ABC Arbitrage vs. CBO Territoria SA | ABC Arbitrage vs. Rubis SCA | ABC Arbitrage vs. Nexity | ABC Arbitrage vs. Gaztransport Technigaz SAS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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