Correlation Between CTPartners Executive and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both CTPartners Executive and Publicis 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 CTPartners Executive and Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTPartners Executive Search and Publicis Groupe SA, you can compare the effects of market volatilities on CTPartners Executive and Publicis 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 CTPartners Executive with a short position of Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTPartners Executive and Publicis Groupe.
Diversification Opportunities for CTPartners Executive and Publicis Groupe
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CTPartners and Publicis is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CTPartners Executive Search and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe SA and CTPartners Executive 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 CTPartners Executive Search are associated (or correlated) with Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of CTPartners Executive i.e., CTPartners Executive and Publicis Groupe go up and down completely randomly.
Pair Corralation between CTPartners Executive and Publicis Groupe
If you would invest 10,495 in Publicis Groupe SA on September 2, 2024 and sell it today you would earn a total of 152.00 from holding Publicis Groupe SA or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CTPartners Executive Search vs. Publicis Groupe SA
Performance |
| Timeline |
| CTPartners Executive |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Publicis Groupe SA |
CTPartners Executive and Publicis Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTPartners Executive and Publicis Groupe
The main advantage of trading using opposite CTPartners Executive and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTPartners Executive position performs unexpectedly, Publicis 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 Publicis Groupe will offset losses from the drop in Publicis Groupe's long position.| CTPartners Executive vs. Kelly Services A | CTPartners Executive vs. Korn Ferry | CTPartners Executive vs. Heidrick Struggles International | CTPartners Executive vs. Hudson Global |
| Publicis Groupe vs. Beyond Commerce | Publicis Groupe vs. Baosheng Media Group | Publicis Groupe vs. MGO Global Common | Publicis Groupe vs. CMG Holdings Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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