Correlation Between Cegedim SA and Groupe Partouche
Can any of the company-specific risk be diversified away by investing in both Cegedim 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 Cegedim 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 Cegedim SA and Groupe Partouche SA, you can compare the effects of market volatilities on Cegedim 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 Cegedim SA with a short position of Groupe Partouche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cegedim SA and Groupe Partouche.
Diversification Opportunities for Cegedim SA and Groupe Partouche
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cegedim and Groupe is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cegedim 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 Cegedim 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 Cegedim 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 Cegedim SA i.e., Cegedim SA and Groupe Partouche go up and down completely randomly.
Pair Corralation between Cegedim SA and Groupe Partouche
Assuming the 90 days trading horizon Cegedim SA is expected to generate 1.64 times more return on investment than Groupe Partouche. However, Cegedim SA is 1.64 times more volatile than Groupe Partouche SA. It trades about 0.24 of its potential returns per unit of risk. Groupe Partouche SA is currently generating about -0.06 per unit of risk. If you would invest 1,155 in Cegedim SA on December 1, 2024 and sell it today you would earn a total of 185.00 from holding Cegedim SA or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cegedim SA vs. Groupe Partouche SA
Performance |
| Timeline |
| Cegedim SA |
| Groupe Partouche |
Cegedim SA and Groupe Partouche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cegedim SA and Groupe Partouche
The main advantage of trading using opposite Cegedim SA and Groupe Partouche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cegedim 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.| Cegedim SA vs. Bonduelle SCA | Cegedim SA vs. Boiron SA | Cegedim SA vs. Assystem SA | Cegedim SA vs. Lectra SA |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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