Correlation Between Groupe LDLC and Groupe Guillin
Can any of the company-specific risk be diversified away by investing in both Groupe LDLC and Groupe Guillin 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 LDLC and Groupe Guillin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe LDLC SA and Groupe Guillin SA, you can compare the effects of market volatilities on Groupe LDLC and Groupe Guillin 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 LDLC with a short position of Groupe Guillin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe LDLC and Groupe Guillin.
Diversification Opportunities for Groupe LDLC and Groupe Guillin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Groupe and Groupe is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Groupe LDLC SA and Groupe Guillin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Guillin SA and Groupe LDLC 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 LDLC SA are associated (or correlated) with Groupe Guillin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Guillin SA has no effect on the direction of Groupe LDLC i.e., Groupe LDLC and Groupe Guillin go up and down completely randomly.
Pair Corralation between Groupe LDLC and Groupe Guillin
Assuming the 90 days trading horizon Groupe LDLC SA is expected to under-perform the Groupe Guillin. In addition to that, Groupe LDLC is 2.28 times more volatile than Groupe Guillin SA. It trades about -0.1 of its total potential returns per unit of risk. Groupe Guillin SA is currently generating about -0.06 per unit of volatility. If you would invest 2,890 in Groupe Guillin SA on September 1, 2024 and sell it today you would lose (295.00) from holding Groupe Guillin SA or give up 10.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.24% |
| Values | Daily Returns |
Groupe LDLC SA vs. Groupe Guillin SA
Performance |
| Timeline |
| Groupe LDLC SA |
| Groupe Guillin SA |
Groupe LDLC and Groupe Guillin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe LDLC and Groupe Guillin
The main advantage of trading using opposite Groupe LDLC and Groupe Guillin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe LDLC position performs unexpectedly, Groupe Guillin 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 Guillin will offset losses from the drop in Groupe Guillin's long position.| Groupe LDLC vs. Piscines Desjoyaux SA | Groupe LDLC vs. Claranova SE | Groupe LDLC vs. Trigano SA | Groupe LDLC vs. Chargeurs SA |
| Groupe Guillin vs. Voltalia SA | Groupe Guillin vs. Ecoslops SA | Groupe Guillin vs. Agripower France Sa | Groupe Guillin vs. Enertime SAS |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |