Correlation Between Groupe Guillin and Passat Socit
Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and Passat Socit 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 Passat Socit 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 Passat Socit Anonyme, you can compare the effects of market volatilities on Groupe Guillin and Passat Socit 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 Passat Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and Passat Socit.
Diversification Opportunities for Groupe Guillin and Passat Socit
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Groupe and Passat is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Passat Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Passat Socit Anonyme 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 Passat Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Passat Socit Anonyme has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Passat Socit go up and down completely randomly.
Pair Corralation between Groupe Guillin and Passat Socit
Assuming the 90 days trading horizon Groupe Guillin SA is expected to under-perform the Passat Socit. But the stock apears to be less risky and, when comparing its historical volatility, Groupe Guillin SA is 1.37 times less risky than Passat Socit. The stock trades about -0.19 of its potential returns per unit of risk. The Passat Socit Anonyme is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 468.00 in Passat Socit Anonyme on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Passat Socit Anonyme or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Guillin SA vs. Passat Socit Anonyme
Performance |
| Timeline |
| Groupe Guillin SA |
| Passat Socit Anonyme |
Groupe Guillin and Passat Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Guillin and Passat Socit
The main advantage of trading using opposite Groupe Guillin and Passat Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Guillin position performs unexpectedly, Passat Socit 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 Passat Socit will offset losses from the drop in Passat Socit's long position.| Groupe Guillin vs. Neurones | Groupe Guillin vs. Aubay Socit Anonyme | Groupe Guillin vs. Infotel SA | Groupe Guillin vs. Manitou BF SA |
| Passat Socit vs. Groupe Partouche SA | Passat Socit vs. Gevelot | Passat Socit vs. Plastiques du Val | Passat Socit vs. Trilogiq |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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