Correlation Between Samse SA and Grard Perrier
Can any of the company-specific risk be diversified away by investing in both Samse SA and Grard Perrier 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 Grard Perrier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samse SA and Grard Perrier Industrie, you can compare the effects of market volatilities on Samse SA and Grard Perrier 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 Grard Perrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samse SA and Grard Perrier.
Diversification Opportunities for Samse SA and Grard Perrier
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samse and Grard is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Samse SA and Grard Perrier Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grard Perrier Industrie 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 Grard Perrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grard Perrier Industrie has no effect on the direction of Samse SA i.e., Samse SA and Grard Perrier go up and down completely randomly.
Pair Corralation between Samse SA and Grard Perrier
Assuming the 90 days trading horizon Samse SA is expected to under-perform the Grard Perrier. But the stock apears to be less risky and, when comparing its historical volatility, Samse SA is 1.26 times less risky than Grard Perrier. The stock trades about -0.18 of its potential returns per unit of risk. The Grard Perrier Industrie is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 9,200 in Grard Perrier Industrie on August 28, 2024 and sell it today you would lose (340.00) from holding Grard Perrier Industrie or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samse SA vs. Grard Perrier Industrie
Performance |
| Timeline |
| Samse SA |
| Grard Perrier Industrie |
Samse SA and Grard Perrier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samse SA and Grard Perrier
The main advantage of trading using opposite Samse SA and Grard Perrier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samse SA position performs unexpectedly, Grard Perrier 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 Grard Perrier will offset losses from the drop in Grard Perrier's long position.The idea behind Samse SA and Grard Perrier Industrie pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Grard Perrier vs. Manitou BF SA | Grard Perrier vs. Ossiam Minimum Variance | Grard Perrier vs. Granite 3x LVMH | Grard Perrier vs. 21Shares Polkadot ETP |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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