Correlation Between Guerbet S and Haulotte Group
Can any of the company-specific risk be diversified away by investing in both Guerbet S and Haulotte Group 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 Guerbet S and Haulotte Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guerbet S A and Haulotte Group SA, you can compare the effects of market volatilities on Guerbet S and Haulotte Group 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 Guerbet S with a short position of Haulotte Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guerbet S and Haulotte Group.
Diversification Opportunities for Guerbet S and Haulotte Group
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guerbet and Haulotte is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guerbet S A and Haulotte Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haulotte Group SA and Guerbet S 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 Guerbet S A are associated (or correlated) with Haulotte Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haulotte Group SA has no effect on the direction of Guerbet S i.e., Guerbet S and Haulotte Group go up and down completely randomly.
Pair Corralation between Guerbet S and Haulotte Group
Assuming the 90 days trading horizon Guerbet S A is expected to under-perform the Haulotte Group. In addition to that, Guerbet S is 1.11 times more volatile than Haulotte Group SA. It trades about -0.66 of its total potential returns per unit of risk. Haulotte Group SA is currently generating about -0.08 per unit of volatility. If you would invest 274.00 in Haulotte Group SA on August 30, 2024 and sell it today you would lose (8.00) from holding Haulotte Group SA or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guerbet S A vs. Haulotte Group SA
Performance |
| Timeline |
| Guerbet S A |
| Haulotte Group SA |
Guerbet S and Haulotte Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guerbet S and Haulotte Group
The main advantage of trading using opposite Guerbet S and Haulotte Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guerbet S position performs unexpectedly, Haulotte Group 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 Haulotte Group will offset losses from the drop in Haulotte Group's long position.The idea behind Guerbet S A and Haulotte Group SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Haulotte Group vs. Manitou BF SA | Haulotte Group vs. NRJ Group | Haulotte Group vs. Etablissements Maurel et | Haulotte Group vs. Trigano 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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