Correlation Between Samse SA and Graines Voltz
Can any of the company-specific risk be diversified away by investing in both Samse SA and Graines Voltz 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 Samse SA and Graines Voltz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samse SA and Graines Voltz SA, you can compare the effects of market volatilities on Samse SA and Graines Voltz 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 Samse SA with a short position of Graines Voltz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samse SA and Graines Voltz.
Diversification Opportunities for Samse SA and Graines Voltz
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samse and Graines is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Samse SA and Graines Voltz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graines Voltz SA and Samse SA 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 Samse SA are associated (or correlated) with Graines Voltz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graines Voltz SA has no effect on the direction of Samse SA i.e., Samse SA and Graines Voltz go up and down completely randomly.
Pair Corralation between Samse SA and Graines Voltz
Assuming the 90 days trading horizon Samse SA is expected to generate 0.72 times more return on investment than Graines Voltz. However, Samse SA is 1.39 times less risky than Graines Voltz. It trades about -0.14 of its potential returns per unit of risk. Graines Voltz SA is currently generating about -0.1 per unit of risk. If you would invest 17,914 in Samse SA on September 5, 2024 and sell it today you would lose (4,714) from holding Samse SA or give up 26.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samse SA vs. Graines Voltz SA
Performance |
| Timeline |
| Samse SA |
| Graines Voltz SA |
Samse SA and Graines Voltz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samse SA and Graines Voltz
The main advantage of trading using opposite Samse SA and Graines Voltz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samse SA position performs unexpectedly, Graines Voltz 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 Graines Voltz will offset losses from the drop in Graines Voltz's long position.| Samse SA vs. SA Catana Group | Samse SA vs. Trigano SA | Samse SA vs. Bnteau SA | Samse SA vs. Piscines Desjoyaux SA |
| Graines Voltz vs. Jacques Bogart SA | Graines Voltz vs. Piscines Desjoyaux SA | Graines Voltz vs. Plastiques du Val | Graines Voltz vs. Robertet 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |