Correlation Between Emerald Expositions and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions 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 Emerald Expositions and Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Expositions Events and Publicis Groupe SA, you can compare the effects of market volatilities on Emerald Expositions 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 Emerald Expositions with a short position of Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and Publicis Groupe.
Diversification Opportunities for Emerald Expositions and Publicis Groupe
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerald and Publicis is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events 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 Emerald Expositions 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 Emerald Expositions Events 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 Emerald Expositions i.e., Emerald Expositions and Publicis Groupe go up and down completely randomly.
Pair Corralation between Emerald Expositions and Publicis Groupe
Considering the 90-day investment horizon Emerald Expositions Events is expected to generate 3.35 times more return on investment than Publicis Groupe. However, Emerald Expositions is 3.35 times more volatile than Publicis Groupe SA. It trades about 0.07 of its potential returns per unit of risk. Publicis Groupe SA is currently generating about 0.14 per unit of risk. If you would invest 464.00 in Emerald Expositions Events on August 30, 2024 and sell it today you would earn a total of 18.00 from holding Emerald Expositions Events or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Emerald Expositions Events vs. Publicis Groupe SA
Performance |
| Timeline |
| Emerald Expositions |
| Publicis Groupe SA |
Emerald Expositions and Publicis Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Expositions and Publicis Groupe
The main advantage of trading using opposite Emerald Expositions and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions 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.| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Marchex | Emerald Expositions vs. Innovid Corp |
| Publicis Groupe vs. Ross Stores | Publicis Groupe vs. American Axle Manufacturing | Publicis Groupe vs. Modine Manufacturing | Publicis Groupe vs. Wabash National |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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