Correlation Between Groupe Partouche and Vente Unique
Can any of the company-specific risk be diversified away by investing in both Groupe Partouche and Vente Unique 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 Groupe Partouche and Vente Unique into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Partouche SA and Vente Unique, you can compare the effects of market volatilities on Groupe Partouche and Vente Unique 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 Groupe Partouche with a short position of Vente Unique. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Partouche and Vente Unique.
Diversification Opportunities for Groupe Partouche and Vente Unique
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Groupe and Vente is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and Vente Unique in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vente Unique and Groupe Partouche 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 Groupe Partouche SA are associated (or correlated) with Vente Unique. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vente Unique has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and Vente Unique go up and down completely randomly.
Pair Corralation between Groupe Partouche and Vente Unique
Assuming the 90 days trading horizon Groupe Partouche is expected to generate 76.1 times less return on investment than Vente Unique. But when comparing it to its historical volatility, Groupe Partouche SA is 1.43 times less risky than Vente Unique. It trades about 0.0 of its potential returns per unit of risk. Vente Unique is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,001 in Vente Unique on September 3, 2024 and sell it today you would earn a total of 289.00 from holding Vente Unique or generate 28.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Partouche SA vs. Vente Unique
Performance |
| Timeline |
| Groupe Partouche |
| Vente Unique |
Groupe Partouche and Vente Unique Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Partouche and Vente Unique
The main advantage of trading using opposite Groupe Partouche and Vente Unique positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Partouche position performs unexpectedly, Vente Unique 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 Vente Unique will offset losses from the drop in Vente Unique's long position.| Groupe Partouche vs. SA Catana Group | Groupe Partouche vs. Trigano SA | Groupe Partouche vs. Bnteau SA | Groupe Partouche vs. Piscines Desjoyaux SA |
| Vente Unique vs. Piscines Desjoyaux SA | Vente Unique vs. Groupe LDLC SA | Vente Unique vs. Centrale dAchat Franaise | Vente Unique vs. Akwel 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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