Correlation Between Groupe Partouche and Compagnie
Can any of the company-specific risk be diversified away by investing in both Groupe Partouche and Compagnie 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 Compagnie 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 Compagnie Du Mont Blanc, you can compare the effects of market volatilities on Groupe Partouche and Compagnie 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 Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Partouche and Compagnie.
Diversification Opportunities for Groupe Partouche and Compagnie
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Groupe and Compagnie is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and Compagnie Du Mont Blanc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Du Mont 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 Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Du Mont has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and Compagnie go up and down completely randomly.
Pair Corralation between Groupe Partouche and Compagnie
Assuming the 90 days trading horizon Groupe Partouche SA is expected to under-perform the Compagnie. But the stock apears to be less risky and, when comparing its historical volatility, Groupe Partouche SA is 1.21 times less risky than Compagnie. The stock trades about -0.2 of its potential returns per unit of risk. The Compagnie Du Mont Blanc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 13,443 in Compagnie Du Mont Blanc on September 15, 2024 and sell it today you would earn a total of 857.00 from holding Compagnie Du Mont Blanc or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Partouche SA vs. Compagnie Du Mont Blanc
Performance |
| Timeline |
| Groupe Partouche |
| Compagnie Du Mont |
Groupe Partouche and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Partouche and Compagnie
The main advantage of trading using opposite Groupe Partouche and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Partouche position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie'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 |
| Compagnie vs. Compagnie des Alpes | Compagnie vs. Groupe Partouche SA | Compagnie vs. IDI SCA | Compagnie vs. Linedata Services 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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