Correlation Between Interpublic Group and JCDecaux
Can any of the company-specific risk be diversified away by investing in both Interpublic Group and JCDecaux 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 Interpublic Group and JCDecaux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Interpublic Group and JCDecaux SA, you can compare the effects of market volatilities on Interpublic Group and JCDecaux 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 Interpublic Group with a short position of JCDecaux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interpublic Group and JCDecaux.
Diversification Opportunities for Interpublic Group and JCDecaux
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Interpublic and JCDecaux is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding The Interpublic Group and JCDecaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCDecaux SA and Interpublic Group 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 The Interpublic Group are associated (or correlated) with JCDecaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCDecaux SA has no effect on the direction of Interpublic Group i.e., Interpublic Group and JCDecaux go up and down completely randomly.
Pair Corralation between Interpublic Group and JCDecaux
Assuming the 90 days horizon The Interpublic Group is expected to generate 0.81 times more return on investment than JCDecaux. However, The Interpublic Group is 1.23 times less risky than JCDecaux. It trades about 0.0 of its potential returns per unit of risk. JCDecaux SA is currently generating about 0.0 per unit of risk. If you would invest 2,768 in The Interpublic Group on October 19, 2024 and sell it today you would lose (83.00) from holding The Interpublic Group or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Interpublic Group vs. JCDecaux SA
Performance |
| Timeline |
| Interpublic Group |
| JCDecaux SA |
Interpublic Group and JCDecaux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interpublic Group and JCDecaux
The main advantage of trading using opposite Interpublic Group and JCDecaux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interpublic Group position performs unexpectedly, JCDecaux 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 JCDecaux will offset losses from the drop in JCDecaux's long position.| Interpublic Group vs. Publicis Groupe SA | Interpublic Group vs. Omnicom Group | Interpublic Group vs. WPP PLC | Interpublic Group vs. WPP PLC ADR |
| JCDecaux vs. Publicis Groupe SA | JCDecaux vs. Omnicom Group | JCDecaux vs. The Interpublic Group | JCDecaux vs. WPP PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |