Correlation Between Derichebourg and Groupe Guillin
Can any of the company-specific risk be diversified away by investing in both Derichebourg and Groupe Guillin 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 Derichebourg and Groupe Guillin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Derichebourg and Groupe Guillin SA, you can compare the effects of market volatilities on Derichebourg and Groupe Guillin 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 Derichebourg with a short position of Groupe Guillin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Derichebourg and Groupe Guillin.
Diversification Opportunities for Derichebourg and Groupe Guillin
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Derichebourg and Groupe is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Derichebourg and Groupe Guillin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Guillin SA and Derichebourg 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 Derichebourg are associated (or correlated) with Groupe Guillin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Guillin SA has no effect on the direction of Derichebourg i.e., Derichebourg and Groupe Guillin go up and down completely randomly.
Pair Corralation between Derichebourg and Groupe Guillin
Assuming the 90 days trading horizon Derichebourg is expected to generate 8.5 times less return on investment than Groupe Guillin. In addition to that, Derichebourg is 1.25 times more volatile than Groupe Guillin SA. It trades about 0.0 of its total potential returns per unit of risk. Groupe Guillin SA is currently generating about 0.05 per unit of volatility. If you would invest 1,762 in Groupe Guillin SA on August 28, 2024 and sell it today you would earn a total of 833.00 from holding Groupe Guillin SA or generate 47.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Derichebourg vs. Groupe Guillin SA
Performance |
| Timeline |
| Derichebourg |
| Groupe Guillin SA |
Derichebourg and Groupe Guillin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Derichebourg and Groupe Guillin
The main advantage of trading using opposite Derichebourg and Groupe Guillin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Derichebourg position performs unexpectedly, Groupe Guillin 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 Guillin will offset losses from the drop in Groupe Guillin's long position.| Derichebourg vs. Prodways Group SA | Derichebourg vs. Claranova SE | Derichebourg vs. DBV Technologies SA | Derichebourg vs. Manitou BF SA |
| Groupe Guillin vs. Neurones | Groupe Guillin vs. Aubay Socit Anonyme | Groupe Guillin vs. Infotel SA | Groupe Guillin vs. Manitou BF 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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