Correlation Between Piscines Desjoyaux and Thermador Groupe
Can any of the company-specific risk be diversified away by investing in both Piscines Desjoyaux and Thermador Groupe 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 Piscines Desjoyaux and Thermador Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piscines Desjoyaux SA and Thermador Groupe SA, you can compare the effects of market volatilities on Piscines Desjoyaux and Thermador Groupe 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 Piscines Desjoyaux with a short position of Thermador Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piscines Desjoyaux and Thermador Groupe.
Diversification Opportunities for Piscines Desjoyaux and Thermador Groupe
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Piscines and Thermador is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Piscines Desjoyaux SA and Thermador Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermador Groupe and Piscines Desjoyaux 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 Piscines Desjoyaux SA are associated (or correlated) with Thermador Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermador Groupe has no effect on the direction of Piscines Desjoyaux i.e., Piscines Desjoyaux and Thermador Groupe go up and down completely randomly.
Pair Corralation between Piscines Desjoyaux and Thermador Groupe
Assuming the 90 days trading horizon Piscines Desjoyaux SA is expected to generate 0.8 times more return on investment than Thermador Groupe. However, Piscines Desjoyaux SA is 1.25 times less risky than Thermador Groupe. It trades about 0.17 of its potential returns per unit of risk. Thermador Groupe SA is currently generating about -0.04 per unit of risk. If you would invest 1,215 in Piscines Desjoyaux SA on October 26, 2024 and sell it today you would earn a total of 165.00 from holding Piscines Desjoyaux SA or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piscines Desjoyaux SA vs. Thermador Groupe SA
Performance |
| Timeline |
| Piscines Desjoyaux |
| Thermador Groupe |
Piscines Desjoyaux and Thermador Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piscines Desjoyaux and Thermador Groupe
The main advantage of trading using opposite Piscines Desjoyaux and Thermador Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piscines Desjoyaux position performs unexpectedly, Thermador Groupe 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 Thermador Groupe will offset losses from the drop in Thermador Groupe's long position.| Piscines Desjoyaux vs. SA Catana Group | Piscines Desjoyaux vs. Thermador Groupe SA | Piscines Desjoyaux vs. Trigano SA | Piscines Desjoyaux vs. Groupe Guillin SA |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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