Correlation Between Groupe CRIT and Synergie
Can any of the company-specific risk be diversified away by investing in both Groupe CRIT and Synergie 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 CRIT and Synergie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe CRIT SA and Synergie SE, you can compare the effects of market volatilities on Groupe CRIT and Synergie 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 CRIT with a short position of Synergie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe CRIT and Synergie.
Diversification Opportunities for Groupe CRIT and Synergie
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Groupe and Synergie is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Groupe CRIT SA and Synergie SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synergie SE and Groupe CRIT 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 CRIT SA are associated (or correlated) with Synergie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synergie SE has no effect on the direction of Groupe CRIT i.e., Groupe CRIT and Synergie go up and down completely randomly.
Pair Corralation between Groupe CRIT and Synergie
Assuming the 90 days trading horizon Groupe CRIT SA is expected to generate 1.69 times more return on investment than Synergie. However, Groupe CRIT is 1.69 times more volatile than Synergie SE. It trades about -0.06 of its potential returns per unit of risk. Synergie SE is currently generating about -0.26 per unit of risk. If you would invest 6,640 in Groupe CRIT SA on August 25, 2024 and sell it today you would lose (360.00) from holding Groupe CRIT SA or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe CRIT SA vs. Synergie SE
Performance |
| Timeline |
| Groupe CRIT SA |
| Synergie SE |
Groupe CRIT and Synergie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe CRIT and Synergie
The main advantage of trading using opposite Groupe CRIT and Synergie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe CRIT position performs unexpectedly, Synergie 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 Synergie will offset losses from the drop in Synergie's long position.| Groupe CRIT vs. Groupe Guillin SA | Groupe CRIT vs. Delfingen | Groupe CRIT vs. Synergie SE | Groupe CRIT vs. Clasquin |
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 Stocks Directory module to find actively traded stocks across global markets.
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