Correlation Between Grolleau SAS and Ekinops SA
Can any of the company-specific risk be diversified away by investing in both Grolleau SAS and Ekinops SA 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 Grolleau SAS and Ekinops SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grolleau SAS and Ekinops SA, you can compare the effects of market volatilities on Grolleau SAS and Ekinops SA 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 Grolleau SAS with a short position of Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grolleau SAS and Ekinops SA.
Diversification Opportunities for Grolleau SAS and Ekinops SA
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grolleau and Ekinops is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Grolleau SAS and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops SA and Grolleau SAS 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 Grolleau SAS are associated (or correlated) with Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of Grolleau SAS i.e., Grolleau SAS and Ekinops SA go up and down completely randomly.
Pair Corralation between Grolleau SAS and Ekinops SA
Assuming the 90 days trading horizon Grolleau SAS is expected to generate 1.62 times more return on investment than Ekinops SA. However, Grolleau SAS is 1.62 times more volatile than Ekinops SA. It trades about 0.1 of its potential returns per unit of risk. Ekinops SA is currently generating about -0.25 per unit of risk. If you would invest 389.00 in Grolleau SAS on September 1, 2024 and sell it today you would earn a total of 29.00 from holding Grolleau SAS or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grolleau SAS vs. Ekinops SA
Performance |
| Timeline |
| Grolleau SAS |
| Ekinops SA |
Grolleau SAS and Ekinops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grolleau SAS and Ekinops SA
The main advantage of trading using opposite Grolleau SAS and Ekinops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grolleau SAS position performs unexpectedly, Ekinops SA 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 Ekinops SA will offset losses from the drop in Ekinops SA's long position.| Grolleau SAS vs. Berkem Group SA | Grolleau SAS vs. Waga Energy SA | Grolleau SAS vs. Entech SE SAS | Grolleau SAS vs. Orapi SA |
| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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