Correlation Between Grard Perrier and Thermador Groupe
Can any of the company-specific risk be diversified away by investing in both Grard Perrier and Thermador 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 Thermador 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 Thermador Groupe SA, you can compare the effects of market volatilities on Grard Perrier and Thermador 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 Thermador Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grard Perrier and Thermador Groupe.
Diversification Opportunities for Grard Perrier and Thermador Groupe
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grard and Thermador is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Grard Perrier Industrie and Thermador Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermador 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 Thermador Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermador Groupe has no effect on the direction of Grard Perrier i.e., Grard Perrier and Thermador Groupe go up and down completely randomly.
Pair Corralation between Grard Perrier and Thermador Groupe
Assuming the 90 days trading horizon Grard Perrier Industrie is expected to under-perform the Thermador Groupe. In addition to that, Grard Perrier is 1.09 times more volatile than Thermador Groupe SA. It trades about -0.33 of its total potential returns per unit of risk. Thermador Groupe SA is currently generating about 0.01 per unit of volatility. If you would invest 7,180 in Thermador Groupe SA on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Thermador Groupe SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grard Perrier Industrie vs. Thermador Groupe SA
Performance |
| Timeline |
| Grard Perrier Industrie |
| Thermador Groupe |
Grard Perrier and Thermador Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grard Perrier and Thermador Groupe
The main advantage of trading using opposite Grard Perrier and Thermador Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grard Perrier position performs unexpectedly, Thermador 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 Thermador Groupe will offset losses from the drop in Thermador Groupe'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 |
| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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