Correlation Between Esso SAF and Groupe Partouche
Can any of the company-specific risk be diversified away by investing in both Esso SAF 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 Esso SAF and Groupe Partouche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esso SAF and Groupe Partouche SA, you can compare the effects of market volatilities on Esso SAF 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 Esso SAF with a short position of Groupe Partouche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esso SAF and Groupe Partouche.
Diversification Opportunities for Esso SAF and Groupe Partouche
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Esso and Groupe is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Esso SAF and Groupe Partouche SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Partouche and Esso SAF 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 Esso SAF 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 Esso SAF i.e., Esso SAF and Groupe Partouche go up and down completely randomly.
Pair Corralation between Esso SAF and Groupe Partouche
Assuming the 90 days horizon Esso SAF is expected to generate 2.2 times more return on investment than Groupe Partouche. However, Esso SAF is 2.2 times more volatile than Groupe Partouche SA. It trades about 0.08 of its potential returns per unit of risk. Groupe Partouche SA is currently generating about 0.03 per unit of risk. If you would invest 5,241 in Esso SAF on September 1, 2024 and sell it today you would earn a total of 4,749 from holding Esso SAF or generate 90.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Esso SAF vs. Groupe Partouche SA
Performance |
| Timeline |
| Esso SAF |
| Groupe Partouche |
Esso SAF and Groupe Partouche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esso SAF and Groupe Partouche
The main advantage of trading using opposite Esso SAF and Groupe Partouche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esso SAF 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.| Esso SAF vs. Etablissements Maurel et | Esso SAF vs. Eramet SA | Esso SAF vs. Socit BIC SA | Esso SAF vs. TotalEnergies EP Gabon |
| Groupe Partouche vs. Vente Unique | Groupe Partouche vs. Groupe Sfpi | Groupe Partouche vs. Cegedim SA | Groupe Partouche vs. SA Catana 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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