Correlation Between Groupe Guillin and TronicS Microsystems
Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and TronicS Microsystems 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 TronicS Microsystems 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 TronicS Microsystems SA, you can compare the effects of market volatilities on Groupe Guillin and TronicS Microsystems 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 TronicS Microsystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and TronicS Microsystems.
Diversification Opportunities for Groupe Guillin and TronicS Microsystems
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Groupe and TronicS is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and TronicS Microsystems SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TronicS Microsystems 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 TronicS Microsystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TronicS Microsystems has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and TronicS Microsystems go up and down completely randomly.
Pair Corralation between Groupe Guillin and TronicS Microsystems
Assuming the 90 days trading horizon Groupe Guillin is expected to generate 6.54 times less return on investment than TronicS Microsystems. But when comparing it to its historical volatility, Groupe Guillin SA is 4.0 times less risky than TronicS Microsystems. It trades about 0.02 of its potential returns per unit of risk. TronicS Microsystems SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 320.00 in TronicS Microsystems SA on September 14, 2024 and sell it today you would earn a total of 26.00 from holding TronicS Microsystems SA or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Groupe Guillin SA vs. TronicS Microsystems SA
Performance |
| Timeline |
| Groupe Guillin SA |
| TronicS Microsystems |
Groupe Guillin and TronicS Microsystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Guillin and TronicS Microsystems
The main advantage of trading using opposite Groupe Guillin and TronicS Microsystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Guillin position performs unexpectedly, TronicS Microsystems 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 TronicS Microsystems will offset losses from the drop in TronicS Microsystems' long position.| Groupe Guillin vs. Robertet SA | Groupe Guillin vs. Thermador Groupe SA | Groupe Guillin vs. Grard Perrier Industrie |
| TronicS Microsystems vs. Groupe Guillin SA | TronicS Microsystems vs. Stef SA | TronicS Microsystems vs. SA Catana Group | TronicS Microsystems 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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