Correlation Between Groupe Guillin and Saint Jean
Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and Saint Jean 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 Saint Jean 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 Saint Jean Groupe, you can compare the effects of market volatilities on Groupe Guillin and Saint Jean 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 Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and Saint Jean.
Diversification Opportunities for Groupe Guillin and Saint Jean
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Groupe and Saint is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Saint Jean Groupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Groupe 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 Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Groupe has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Saint Jean go up and down completely randomly.
Pair Corralation between Groupe Guillin and Saint Jean
Assuming the 90 days trading horizon Groupe Guillin SA is expected to generate 0.84 times more return on investment than Saint Jean. However, Groupe Guillin SA is 1.19 times less risky than Saint Jean. It trades about 0.02 of its potential returns per unit of risk. Saint Jean Groupe is currently generating about 0.0 per unit of risk. If you would invest 2,583 in Groupe Guillin SA on September 14, 2024 and sell it today you would earn a total of 177.00 from holding Groupe Guillin SA or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Groupe Guillin SA vs. Saint Jean Groupe
Performance |
| Timeline |
| Groupe Guillin SA |
| Saint Jean Groupe |
Groupe Guillin and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Guillin and Saint Jean
The main advantage of trading using opposite Groupe Guillin and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Guillin position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean's long position.| Groupe Guillin vs. Robertet SA | Groupe Guillin vs. Thermador Groupe SA | Groupe Guillin vs. Grard Perrier Industrie |
| Saint Jean vs. Stef SA | Saint Jean vs. Bonduelle SCA | Saint Jean vs. VIEL Cie socit | Saint Jean vs. Groupe Guillin 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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