Correlation Between Groupe JAJ and ACTEOS SA
Can any of the company-specific risk be diversified away by investing in both Groupe JAJ and ACTEOS SA 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 Groupe JAJ and ACTEOS SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe JAJ and ACTEOS SA, you can compare the effects of market volatilities on Groupe JAJ and ACTEOS SA 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 Groupe JAJ with a short position of ACTEOS SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe JAJ and ACTEOS SA.
Diversification Opportunities for Groupe JAJ and ACTEOS SA
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Groupe and ACTEOS is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Groupe JAJ and ACTEOS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACTEOS SA and Groupe JAJ 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 Groupe JAJ are associated (or correlated) with ACTEOS SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACTEOS SA has no effect on the direction of Groupe JAJ i.e., Groupe JAJ and ACTEOS SA go up and down completely randomly.
Pair Corralation between Groupe JAJ and ACTEOS SA
Assuming the 90 days trading horizon Groupe JAJ is expected to generate 0.87 times more return on investment than ACTEOS SA. However, Groupe JAJ is 1.15 times less risky than ACTEOS SA. It trades about 0.07 of its potential returns per unit of risk. ACTEOS SA is currently generating about -0.06 per unit of risk. If you would invest 100.00 in Groupe JAJ on November 28, 2024 and sell it today you would earn a total of 4.00 from holding Groupe JAJ or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe JAJ vs. ACTEOS SA
Performance |
| Timeline |
| Groupe JAJ |
| ACTEOS SA |
Groupe JAJ and ACTEOS SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe JAJ and ACTEOS SA
The main advantage of trading using opposite Groupe JAJ and ACTEOS SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe JAJ position performs unexpectedly, ACTEOS SA 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 ACTEOS SA will offset losses from the drop in ACTEOS SA's long position.| Groupe JAJ vs. Centrale dAchat Franaise | Groupe JAJ vs. Les Htels de | Groupe JAJ vs. ST Dupont | Groupe JAJ vs. Barbara Bui SA |
| ACTEOS SA vs. Avenir Telecom SA | ACTEOS SA vs. ATEME SA | ACTEOS SA vs. Lectra SA | ACTEOS SA vs. BigBen Interactive |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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