Correlation Between Gaumont SA and Gevelot
Can any of the company-specific risk be diversified away by investing in both Gaumont SA and Gevelot 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 Gaumont SA and Gevelot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaumont SA and Gevelot, you can compare the effects of market volatilities on Gaumont SA and Gevelot 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 Gaumont SA with a short position of Gevelot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaumont SA and Gevelot.
Diversification Opportunities for Gaumont SA and Gevelot
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaumont and Gevelot is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gaumont SA and Gevelot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gevelot and Gaumont SA 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 Gaumont SA are associated (or correlated) with Gevelot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gevelot has no effect on the direction of Gaumont SA i.e., Gaumont SA and Gevelot go up and down completely randomly.
Pair Corralation between Gaumont SA and Gevelot
Assuming the 90 days trading horizon Gaumont SA is expected to generate 3.29 times more return on investment than Gevelot. However, Gaumont SA is 3.29 times more volatile than Gevelot. It trades about 0.02 of its potential returns per unit of risk. Gevelot is currently generating about -0.15 per unit of risk. If you would invest 8,500 in Gaumont SA on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Gaumont SA or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaumont SA vs. Gevelot
Performance |
| Timeline |
| Gaumont SA |
| Gevelot |
Gaumont SA and Gevelot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaumont SA and Gevelot
The main advantage of trading using opposite Gaumont SA and Gevelot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaumont SA position performs unexpectedly, Gevelot 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 Gevelot will offset losses from the drop in Gevelot's long position.| Gaumont SA vs. NRJ Group | Gaumont SA vs. Groupe Partouche SA | Gaumont SA vs. Passat Socit Anonyme | Gaumont SA vs. Jacques Bogart 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |