Correlation Between Grard Perrier and EPC Groupe
Can any of the company-specific risk be diversified away by investing in both Grard Perrier and EPC Groupe 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 EPC Groupe 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 EPC Groupe, you can compare the effects of market volatilities on Grard Perrier and EPC Groupe 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 EPC Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grard Perrier and EPC Groupe.
Diversification Opportunities for Grard Perrier and EPC Groupe
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grard and EPC is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Grard Perrier Industrie and EPC Groupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPC Groupe 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 EPC Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPC Groupe has no effect on the direction of Grard Perrier i.e., Grard Perrier and EPC Groupe go up and down completely randomly.
Pair Corralation between Grard Perrier and EPC Groupe
Assuming the 90 days trading horizon Grard Perrier Industrie is expected to under-perform the EPC Groupe. But the stock apears to be less risky and, when comparing its historical volatility, Grard Perrier Industrie is 1.17 times less risky than EPC Groupe. The stock trades about -0.01 of its potential returns per unit of risk. The EPC Groupe is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 18,150 in EPC Groupe on August 24, 2024 and sell it today you would earn a total of 550.00 from holding EPC Groupe or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grard Perrier Industrie vs. EPC Groupe
Performance |
| Timeline |
| Grard Perrier Industrie |
| EPC Groupe |
Grard Perrier and EPC Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grard Perrier and EPC Groupe
The main advantage of trading using opposite Grard Perrier and EPC Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grard Perrier position performs unexpectedly, EPC Groupe 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 EPC Groupe will offset losses from the drop in EPC Groupe's long position.| Grard Perrier vs. Novatech Industries SA | Grard Perrier vs. Manitou BF SA | Grard Perrier vs. Ossiam Minimum Variance | Grard Perrier vs. Granite 3x LVMH |
| EPC Groupe vs. Robertet SA | EPC Groupe vs. Grard Perrier Industrie | EPC Groupe vs. Samse SA | EPC Groupe vs. Manitou BF 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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