Correlation Between Groupe Guillin and Synergie
Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and Synergie 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 Synergie 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 Synergie SE, you can compare the effects of market volatilities on Groupe Guillin and Synergie 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 Synergie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and Synergie.
Diversification Opportunities for Groupe Guillin and Synergie
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Groupe and Synergie is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Synergie SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synergie SE 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 Synergie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synergie SE has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Synergie go up and down completely randomly.
Pair Corralation between Groupe Guillin and Synergie
Assuming the 90 days trading horizon Groupe Guillin SA is expected to generate 1.07 times more return on investment than Synergie. However, Groupe Guillin is 1.07 times more volatile than Synergie SE. It trades about -0.21 of its potential returns per unit of risk. Synergie SE is currently generating about -0.26 per unit of risk. If you would invest 2,920 in Groupe Guillin SA on August 25, 2024 and sell it today you would lose (330.00) from holding Groupe Guillin SA or give up 11.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Guillin SA vs. Synergie SE
Performance |
| Timeline |
| Groupe Guillin SA |
| Synergie SE |
Groupe Guillin and Synergie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Guillin and Synergie
The main advantage of trading using opposite Groupe Guillin and Synergie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Guillin position performs unexpectedly, Synergie 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 Synergie will offset losses from the drop in Synergie's long position.| Groupe Guillin vs. Neurones | Groupe Guillin vs. Aubay Socit Anonyme | Groupe Guillin vs. Infotel SA | Groupe Guillin vs. Manitou BF 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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