Correlation Between Guillemot and Groupe Sfpi
Can any of the company-specific risk be diversified away by investing in both Guillemot and Groupe Sfpi 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 Guillemot and Groupe Sfpi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guillemot SA and Groupe Sfpi, you can compare the effects of market volatilities on Guillemot and Groupe Sfpi 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 Guillemot with a short position of Groupe Sfpi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guillemot and Groupe Sfpi.
Diversification Opportunities for Guillemot and Groupe Sfpi
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guillemot and Groupe is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guillemot SA and Groupe Sfpi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Sfpi and Guillemot 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 Guillemot SA are associated (or correlated) with Groupe Sfpi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Sfpi has no effect on the direction of Guillemot i.e., Guillemot and Groupe Sfpi go up and down completely randomly.
Pair Corralation between Guillemot and Groupe Sfpi
Assuming the 90 days trading horizon Guillemot SA is expected to generate 1.26 times more return on investment than Groupe Sfpi. However, Guillemot is 1.26 times more volatile than Groupe Sfpi. It trades about -0.02 of its potential returns per unit of risk. Groupe Sfpi is currently generating about -0.15 per unit of risk. If you would invest 688.00 in Guillemot SA on September 1, 2024 and sell it today you would lose (10.00) from holding Guillemot SA or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guillemot SA vs. Groupe Sfpi
Performance |
| Timeline |
| Guillemot SA |
| Groupe Sfpi |
Guillemot and Groupe Sfpi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guillemot and Groupe Sfpi
The main advantage of trading using opposite Guillemot and Groupe Sfpi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guillemot position performs unexpectedly, Groupe Sfpi 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 Groupe Sfpi will offset losses from the drop in Groupe Sfpi's long position.| Guillemot vs. Claranova SE | Guillemot vs. SA Catana Group | Guillemot vs. Neurones | Guillemot vs. Groupe Guillin SA |
| Groupe Sfpi vs. Groupe Guillin SA | Groupe Sfpi vs. Stef SA | Groupe Sfpi vs. SA Catana Group | Groupe Sfpi vs. Jacquet Metal Service |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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