Correlation Between Altareit and Groupe Partouche
Can any of the company-specific risk be diversified away by investing in both Altareit 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 Altareit and Groupe Partouche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altareit and Groupe Partouche SA, you can compare the effects of market volatilities on Altareit 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 Altareit with a short position of Groupe Partouche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altareit and Groupe Partouche.
Diversification Opportunities for Altareit and Groupe Partouche
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altareit and Groupe is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Altareit and Groupe Partouche SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Partouche and Altareit 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 Altareit 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 Altareit i.e., Altareit and Groupe Partouche go up and down completely randomly.
Pair Corralation between Altareit and Groupe Partouche
Assuming the 90 days trading horizon Altareit is expected to under-perform the Groupe Partouche. But the stock apears to be less risky and, when comparing its historical volatility, Altareit is 1.79 times less risky than Groupe Partouche. The stock trades about -0.04 of its potential returns per unit of risk. The Groupe Partouche SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,087 in Groupe Partouche SA on November 27, 2024 and sell it today you would lose (297.00) from holding Groupe Partouche SA or give up 14.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altareit vs. Groupe Partouche SA
Performance |
| Timeline |
| Altareit |
| Groupe Partouche |
Altareit and Groupe Partouche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altareit and Groupe Partouche
The main advantage of trading using opposite Altareit and Groupe Partouche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altareit 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.The idea behind Altareit and Groupe Partouche SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Groupe Partouche vs. Passat Socit Anonyme | Groupe Partouche vs. Plastiques du Val | Groupe Partouche vs. NRJ Group | Groupe Partouche vs. Haulotte Group 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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