Correlation Between Grard Perrier and Gevelot
Can any of the company-specific risk be diversified away by investing in both Grard Perrier and Gevelot 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 Grard Perrier and Gevelot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grard Perrier Industrie and Gevelot, you can compare the effects of market volatilities on Grard Perrier and Gevelot 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 Grard Perrier with a short position of Gevelot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grard Perrier and Gevelot.
Diversification Opportunities for Grard Perrier and Gevelot
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grard and Gevelot is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Grard Perrier Industrie and Gevelot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gevelot and Grard Perrier 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 Grard Perrier Industrie are associated (or correlated) with Gevelot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gevelot has no effect on the direction of Grard Perrier i.e., Grard Perrier and Gevelot go up and down completely randomly.
Pair Corralation between Grard Perrier and Gevelot
Assuming the 90 days trading horizon Grard Perrier Industrie is expected to generate 0.57 times more return on investment than Gevelot. However, Grard Perrier Industrie is 1.75 times less risky than Gevelot. It trades about 0.02 of its potential returns per unit of risk. Gevelot is currently generating about 0.01 per unit of risk. If you would invest 8,079 in Grard Perrier Industrie on August 30, 2024 and sell it today you would earn a total of 761.00 from holding Grard Perrier Industrie or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.61% |
| Values | Daily Returns |
Grard Perrier Industrie vs. Gevelot
Performance |
| Timeline |
| Grard Perrier Industrie |
| Gevelot |
Grard Perrier and Gevelot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grard Perrier and Gevelot
The main advantage of trading using opposite Grard Perrier and Gevelot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grard Perrier position performs unexpectedly, Gevelot 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 Gevelot will offset losses from the drop in Gevelot's long position.| Grard Perrier vs. Thermador Groupe SA | Grard Perrier vs. Robertet SA | Grard Perrier vs. Samse SA | Grard Perrier vs. Tonnellerie Francois Freres |
| Gevelot vs. Passat Socit Anonyme | Gevelot vs. Groupe Guillin SA | Gevelot vs. Jacques Bogart SA | Gevelot vs. VIEL Cie socit |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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