Correlation Between Herige SA and Groupe Partouche
Can any of the company-specific risk be diversified away by investing in both Herige SA and Groupe Partouche 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 Groupe Partouche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Herige SA and Groupe Partouche SA, you can compare the effects of market volatilities on Herige SA and Groupe Partouche 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 Groupe Partouche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herige SA and Groupe Partouche.
Diversification Opportunities for Herige SA and Groupe Partouche
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Herige and Groupe is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Herige SA and Groupe Partouche SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Partouche 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 Groupe Partouche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Partouche has no effect on the direction of Herige SA i.e., Herige SA and Groupe Partouche go up and down completely randomly.
Pair Corralation between Herige SA and Groupe Partouche
Assuming the 90 days trading horizon Herige SA is expected to under-perform the Groupe Partouche. In addition to that, Herige SA is 1.31 times more volatile than Groupe Partouche SA. It trades about -0.01 of its total potential returns per unit of risk. Groupe Partouche SA is currently generating about 0.0 per unit of volatility. If you would invest 2,096 in Groupe Partouche SA on September 3, 2024 and sell it today you would lose (86.00) from holding Groupe Partouche SA or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Herige SA vs. Groupe Partouche SA
Performance |
| Timeline |
| Herige SA |
| Groupe Partouche |
Herige SA and Groupe Partouche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Herige SA and Groupe Partouche
The main advantage of trading using opposite Herige SA and Groupe Partouche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herige SA position performs unexpectedly, Groupe Partouche 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 Groupe Partouche will offset losses from the drop in Groupe Partouche'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 |
| Groupe Partouche vs. SA Catana Group | Groupe Partouche vs. Trigano SA | Groupe Partouche vs. Bnteau SA | Groupe Partouche vs. Piscines Desjoyaux 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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