Correlation Between Societe Generale and Thermador Groupe
Can any of the company-specific risk be diversified away by investing in both Societe Generale and Thermador Groupe 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 Societe Generale and Thermador Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Societe Generale SA and Thermador Groupe SA, you can compare the effects of market volatilities on Societe Generale and Thermador Groupe 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 Societe Generale with a short position of Thermador Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Societe Generale and Thermador Groupe.
Diversification Opportunities for Societe Generale and Thermador Groupe
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Societe and Thermador is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Societe Generale SA and Thermador Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermador Groupe and Societe Generale 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 Societe Generale SA are associated (or correlated) with Thermador Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermador Groupe has no effect on the direction of Societe Generale i.e., Societe Generale and Thermador Groupe go up and down completely randomly.
Pair Corralation between Societe Generale and Thermador Groupe
Assuming the 90 days trading horizon Societe Generale SA is expected to generate 1.13 times more return on investment than Thermador Groupe. However, Societe Generale is 1.13 times more volatile than Thermador Groupe SA. It trades about 0.04 of its potential returns per unit of risk. Thermador Groupe SA is currently generating about -0.02 per unit of risk. If you would invest 2,019 in Societe Generale SA on August 28, 2024 and sell it today you would earn a total of 561.00 from holding Societe Generale SA or generate 27.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Societe Generale SA vs. Thermador Groupe SA
Performance |
| Timeline |
| Societe Generale |
| Thermador Groupe |
Societe Generale and Thermador Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Societe Generale and Thermador Groupe
The main advantage of trading using opposite Societe Generale and Thermador Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Societe Generale position performs unexpectedly, Thermador Groupe 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 Thermador Groupe will offset losses from the drop in Thermador Groupe's long position.| Societe Generale vs. BNP Paribas SA | Societe Generale vs. AXA SA | Societe Generale vs. Orange SA | Societe Generale vs. Carrefour SA |
| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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