Correlation Between Groupe Partouche and Les Htels
Can any of the company-specific risk be diversified away by investing in both Groupe Partouche and Les Htels 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 Les Htels 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 Les Htels de, you can compare the effects of market volatilities on Groupe Partouche and Les Htels 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 Les Htels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Partouche and Les Htels.
Diversification Opportunities for Groupe Partouche and Les Htels
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Groupe and Les is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and Les Htels de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Les Htels de 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 Les Htels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Les Htels de has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and Les Htels go up and down completely randomly.
Pair Corralation between Groupe Partouche and Les Htels
Assuming the 90 days trading horizon Groupe Partouche SA is expected to generate 0.32 times more return on investment than Les Htels. However, Groupe Partouche SA is 3.11 times less risky than Les Htels. It trades about 0.0 of its potential returns per unit of risk. Les Htels de is currently generating about -0.03 per unit of risk. If you would invest 2,127 in Groupe Partouche SA on August 29, 2024 and sell it today you would lose (117.00) from holding Groupe Partouche SA or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Partouche SA vs. Les Htels de
Performance |
| Timeline |
| Groupe Partouche |
| Les Htels de |
Groupe Partouche and Les Htels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Partouche and Les Htels
The main advantage of trading using opposite Groupe Partouche and Les Htels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Partouche position performs unexpectedly, Les Htels 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 Les Htels will offset losses from the drop in Les Htels' 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 |
| Les Htels vs. Accor S A | Les Htels vs. Ferm Casino Mun | Les Htels vs. Les Hotels Bav | Les Htels vs. Hoteles Bestprice 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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