Correlation Between Herige SA and Signaux Girod
Can any of the company-specific risk be diversified away by investing in both Herige SA and Signaux Girod 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 Herige SA and Signaux Girod into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Herige SA and Signaux Girod, you can compare the effects of market volatilities on Herige SA and Signaux Girod 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 Herige SA with a short position of Signaux Girod. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herige SA and Signaux Girod.
Diversification Opportunities for Herige SA and Signaux Girod
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Herige and Signaux is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Herige SA and Signaux Girod in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signaux Girod and Herige SA 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 Herige SA are associated (or correlated) with Signaux Girod. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signaux Girod has no effect on the direction of Herige SA i.e., Herige SA and Signaux Girod go up and down completely randomly.
Pair Corralation between Herige SA and Signaux Girod
Assuming the 90 days trading horizon Herige SA is expected to under-perform the Signaux Girod. In addition to that, Herige SA is 1.04 times more volatile than Signaux Girod. It trades about -0.01 of its total potential returns per unit of risk. Signaux Girod is currently generating about 0.04 per unit of volatility. If you would invest 1,092 in Signaux Girod on September 3, 2024 and sell it today you would earn a total of 308.00 from holding Signaux Girod or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Herige SA vs. Signaux Girod
Performance |
| Timeline |
| Herige SA |
| Signaux Girod |
Herige SA and Signaux Girod Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Herige SA and Signaux Girod
The main advantage of trading using opposite Herige SA and Signaux Girod positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herige SA position performs unexpectedly, Signaux Girod 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 Signaux Girod will offset losses from the drop in Signaux Girod's long position.| Herige SA vs. Jacques Bogart SA | Herige SA vs. Passat Socit Anonyme | Herige SA vs. Stef SA | Herige SA vs. Haulotte Group SA |
| Signaux Girod vs. ZCCM Investments Holdings | Signaux Girod vs. Hoteles Bestprice SA | Signaux Girod vs. Jacquet Metal Service | Signaux Girod vs. Sidetrade |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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