Correlation Between Lacroix Group and GEA Grenobl
Can any of the company-specific risk be diversified away by investing in both Lacroix Group and GEA Grenobl 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 Lacroix Group and GEA Grenobl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lacroix Group SA and GEA Grenobl Elect, you can compare the effects of market volatilities on Lacroix Group and GEA Grenobl 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 Lacroix Group with a short position of GEA Grenobl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lacroix Group and GEA Grenobl.
Diversification Opportunities for Lacroix Group and GEA Grenobl
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lacroix and GEA is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lacroix Group SA and GEA Grenobl Elect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEA Grenobl Elect and Lacroix 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 Lacroix Group SA are associated (or correlated) with GEA Grenobl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEA Grenobl Elect has no effect on the direction of Lacroix Group i.e., Lacroix Group and GEA Grenobl go up and down completely randomly.
Pair Corralation between Lacroix Group and GEA Grenobl
Assuming the 90 days trading horizon Lacroix Group SA is expected to under-perform the GEA Grenobl. In addition to that, Lacroix Group is 5.95 times more volatile than GEA Grenobl Elect. It trades about -0.28 of its total potential returns per unit of risk. GEA Grenobl Elect is currently generating about -0.75 per unit of volatility. If you would invest 7,600 in GEA Grenobl Elect on September 2, 2024 and sell it today you would lose (550.00) from holding GEA Grenobl Elect or give up 7.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lacroix Group SA vs. GEA Grenobl Elect
Performance |
| Timeline |
| Lacroix Group SA |
| GEA Grenobl Elect |
Lacroix Group and GEA Grenobl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lacroix Group and GEA Grenobl
The main advantage of trading using opposite Lacroix Group and GEA Grenobl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lacroix Group position performs unexpectedly, GEA Grenobl 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 GEA Grenobl will offset losses from the drop in GEA Grenobl's long position.| Lacroix Group vs. Manitou BF SA | Lacroix Group vs. Jacquet Metal Service | Lacroix Group vs. Mersen SA | Lacroix Group vs. Linedata Services SA |
| GEA Grenobl vs. Graines Voltz SA | GEA Grenobl vs. Linedata Services SA | GEA Grenobl vs. Gevelot | GEA Grenobl vs. Lacroix Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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