Correlation Between Groupe Guillin and Haulotte Group
Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and Haulotte Group 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 Haulotte Group 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 Haulotte Group SA, you can compare the effects of market volatilities on Groupe Guillin and Haulotte Group 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 Haulotte Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and Haulotte Group.
Diversification Opportunities for Groupe Guillin and Haulotte Group
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Groupe and Haulotte is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Haulotte Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haulotte Group 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 Haulotte Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haulotte Group SA has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Haulotte Group go up and down completely randomly.
Pair Corralation between Groupe Guillin and Haulotte Group
Assuming the 90 days trading horizon Groupe Guillin SA is expected to under-perform the Haulotte Group. But the stock apears to be less risky and, when comparing its historical volatility, Groupe Guillin SA is 1.09 times less risky than Haulotte Group. The stock trades about -0.3 of its potential returns per unit of risk. The Haulotte Group SA is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 285.00 in Haulotte Group SA on August 26, 2024 and sell it today you would lose (15.00) from holding Haulotte Group SA or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Guillin SA vs. Haulotte Group SA
Performance |
| Timeline |
| Groupe Guillin SA |
| Haulotte Group SA |
Groupe Guillin and Haulotte Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Guillin and Haulotte Group
The main advantage of trading using opposite Groupe Guillin and Haulotte Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Guillin position performs unexpectedly, Haulotte Group 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 Haulotte Group will offset losses from the drop in Haulotte Group's long position.| Groupe Guillin vs. Neurones | Groupe Guillin vs. Aubay Socit Anonyme | Groupe Guillin vs. Infotel SA | Groupe Guillin vs. Manitou BF SA |
| Haulotte Group vs. Manitou BF SA | Haulotte Group vs. NRJ Group | Haulotte Group vs. Etablissements Maurel et | Haulotte Group vs. Trigano 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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