Correlation Between Groupe Partouche and Hotelim Socit
Can any of the company-specific risk be diversified away by investing in both Groupe Partouche and Hotelim Socit 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 Hotelim Socit 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 Hotelim Socit Anonyme, you can compare the effects of market volatilities on Groupe Partouche and Hotelim Socit 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 Hotelim Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Partouche and Hotelim Socit.
Diversification Opportunities for Groupe Partouche and Hotelim Socit
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Groupe and Hotelim is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and Hotelim Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotelim Socit Anonyme 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 Hotelim Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotelim Socit Anonyme has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and Hotelim Socit go up and down completely randomly.
Pair Corralation between Groupe Partouche and Hotelim Socit
Assuming the 90 days trading horizon Groupe Partouche SA is expected to under-perform the Hotelim Socit. In addition to that, Groupe Partouche is 4.74 times more volatile than Hotelim Socit Anonyme. It trades about -0.11 of its total potential returns per unit of risk. Hotelim Socit Anonyme is currently generating about -0.22 per unit of volatility. If you would invest 4,000 in Hotelim Socit Anonyme on September 3, 2024 and sell it today you would lose (60.00) from holding Hotelim Socit Anonyme or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Partouche SA vs. Hotelim Socit Anonyme
Performance |
| Timeline |
| Groupe Partouche |
| Hotelim Socit Anonyme |
Groupe Partouche and Hotelim Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Partouche and Hotelim Socit
The main advantage of trading using opposite Groupe Partouche and Hotelim Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Partouche position performs unexpectedly, Hotelim Socit 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 Hotelim Socit will offset losses from the drop in Hotelim Socit'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 |
| Hotelim Socit vs. Accor S A | Hotelim Socit vs. Hotel Majestic Cannes | Hotelim Socit vs. Les Hotels Bav | Hotelim Socit 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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