Correlation Between EPC Groupe and Groupe Partouche
Can any of the company-specific risk be diversified away by investing in both EPC Groupe 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 EPC Groupe and Groupe Partouche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPC Groupe and Groupe Partouche SA, you can compare the effects of market volatilities on EPC Groupe 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 EPC Groupe with a short position of Groupe Partouche. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPC Groupe and Groupe Partouche.
Diversification Opportunities for EPC Groupe and Groupe Partouche
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EPC and Groupe is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding EPC Groupe and Groupe Partouche SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Partouche and EPC Groupe 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 EPC Groupe 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 EPC Groupe i.e., EPC Groupe and Groupe Partouche go up and down completely randomly.
Pair Corralation between EPC Groupe and Groupe Partouche
Assuming the 90 days trading horizon EPC Groupe is expected to generate 1.59 times more return on investment than Groupe Partouche. However, EPC Groupe is 1.59 times more volatile than Groupe Partouche SA. It trades about 0.09 of its potential returns per unit of risk. Groupe Partouche SA is currently generating about 0.01 per unit of risk. If you would invest 9,234 in EPC Groupe on August 31, 2024 and sell it today you would earn a total of 9,116 from holding EPC Groupe or generate 98.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
EPC Groupe vs. Groupe Partouche SA
Performance |
| Timeline |
| EPC Groupe |
| Groupe Partouche |
EPC Groupe and Groupe Partouche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPC Groupe and Groupe Partouche
The main advantage of trading using opposite EPC Groupe and Groupe Partouche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPC Groupe 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.| EPC Groupe vs. Robertet SA | EPC Groupe vs. Grard Perrier Industrie | EPC Groupe vs. lectricite de Strasbourg | EPC Groupe vs. Samse 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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