Correlation Between Graines Voltz and Samse SA
Can any of the company-specific risk be diversified away by investing in both Graines Voltz and Samse 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 Graines Voltz and Samse SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graines Voltz SA and Samse SA, you can compare the effects of market volatilities on Graines Voltz and Samse 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 Graines Voltz with a short position of Samse SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graines Voltz and Samse SA.
Diversification Opportunities for Graines Voltz and Samse SA
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Graines and Samse is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Graines Voltz SA and Samse SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samse SA and Graines Voltz 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 Graines Voltz SA are associated (or correlated) with Samse SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samse SA has no effect on the direction of Graines Voltz i.e., Graines Voltz and Samse SA go up and down completely randomly.
Pair Corralation between Graines Voltz and Samse SA
Assuming the 90 days trading horizon Graines Voltz SA is expected to under-perform the Samse SA. In addition to that, Graines Voltz is 1.39 times more volatile than Samse SA. It trades about -0.1 of its total potential returns per unit of risk. Samse SA is currently generating about -0.14 per unit of volatility. If you would invest 17,914 in Samse SA on September 5, 2024 and sell it today you would lose (4,714) from holding Samse SA or give up 26.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graines Voltz SA vs. Samse SA
Performance |
| Timeline |
| Graines Voltz SA |
| Samse SA |
Graines Voltz and Samse SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graines Voltz and Samse SA
The main advantage of trading using opposite Graines Voltz and Samse SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graines Voltz position performs unexpectedly, Samse 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 Samse SA will offset losses from the drop in Samse SA's long position.| Graines Voltz vs. Jacques Bogart SA | Graines Voltz vs. Piscines Desjoyaux SA | Graines Voltz vs. Plastiques du Val | Graines Voltz vs. Robertet SA |
| Samse SA vs. SA Catana Group | Samse SA vs. Trigano SA | Samse SA vs. Bnteau SA | Samse SA vs. Piscines Desjoyaux 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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