Correlation Between Groupe Partouche and EPC Groupe
Can any of the company-specific risk be diversified away by investing in both Groupe Partouche and EPC Groupe 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 EPC Groupe 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 EPC Groupe, you can compare the effects of market volatilities on Groupe Partouche and EPC Groupe 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 EPC Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Partouche and EPC Groupe.
Diversification Opportunities for Groupe Partouche and EPC Groupe
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Groupe and EPC is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and EPC Groupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPC Groupe 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 EPC Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPC Groupe has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and EPC Groupe go up and down completely randomly.
Pair Corralation between Groupe Partouche and EPC Groupe
Assuming the 90 days trading horizon Groupe Partouche is expected to generate 25.02 times less return on investment than EPC Groupe. But when comparing it to its historical volatility, Groupe Partouche SA is 1.59 times less risky than EPC Groupe. It trades about 0.01 of its potential returns per unit of risk. EPC Groupe is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,234 in EPC Groupe on August 31, 2024 and sell it today you would earn a total of 9,116 from holding EPC Groupe or generate 98.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Groupe Partouche SA vs. EPC Groupe
Performance |
| Timeline |
| Groupe Partouche |
| EPC Groupe |
Groupe Partouche and EPC Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Partouche and EPC Groupe
The main advantage of trading using opposite Groupe Partouche and EPC Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Partouche position performs unexpectedly, EPC Groupe 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 EPC Groupe will offset losses from the drop in EPC Groupe's long position.| Groupe Partouche vs. Passat Socit Anonyme | Groupe Partouche vs. Plastiques du Val | Groupe Partouche vs. NRJ Group | Groupe Partouche vs. Haulotte Group SA |
| EPC Groupe vs. Robertet SA | EPC Groupe vs. Grard Perrier Industrie | EPC Groupe vs. lectricite de Strasbourg | EPC Groupe vs. Samse 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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