Correlation Between Groupe Partouche and Soc Franc
Can any of the company-specific risk be diversified away by investing in both Groupe Partouche and Soc Franc 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 Soc Franc 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 Soc Franc Casinos, you can compare the effects of market volatilities on Groupe Partouche and Soc Franc 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 Soc Franc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Partouche and Soc Franc.
Diversification Opportunities for Groupe Partouche and Soc Franc
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Groupe and Soc is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and Soc Franc Casinos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soc Franc Casinos 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 Soc Franc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soc Franc Casinos has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and Soc Franc go up and down completely randomly.
Pair Corralation between Groupe Partouche and Soc Franc
Assuming the 90 days trading horizon Groupe Partouche SA is expected to under-perform the Soc Franc. But the stock apears to be less risky and, when comparing its historical volatility, Groupe Partouche SA is 2.64 times less risky than Soc Franc. The stock trades about -0.17 of its potential returns per unit of risk. The Soc Franc Casinos is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 175.00 in Soc Franc Casinos on November 28, 2024 and sell it today you would earn a total of 11.00 from holding Soc Franc Casinos or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Groupe Partouche SA vs. Soc Franc Casinos
Performance |
| Timeline |
| Groupe Partouche |
| Soc Franc Casinos |
Groupe Partouche and Soc Franc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Partouche and Soc Franc
The main advantage of trading using opposite Groupe Partouche and Soc Franc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Partouche position performs unexpectedly, Soc Franc 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 Soc Franc will offset losses from the drop in Soc Franc'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 |
| Soc Franc vs. Compagnie des Alpes | Soc Franc vs. Groupe Partouche SA | Soc Franc vs. Bnteau SA | Soc Franc vs. Boiron 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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