Correlation Between SwissCom and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both SwissCom and Publicis 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 SwissCom and Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SwissCom AG and Publicis Groupe SA, you can compare the effects of market volatilities on SwissCom and Publicis 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 SwissCom with a short position of Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of SwissCom and Publicis Groupe.
Diversification Opportunities for SwissCom and Publicis Groupe
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SwissCom and Publicis is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SwissCom AG and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe SA and SwissCom 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 SwissCom AG are associated (or correlated) with Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of SwissCom i.e., SwissCom and Publicis Groupe go up and down completely randomly.
Pair Corralation between SwissCom and Publicis Groupe
If you would invest 5,649 in SwissCom AG on September 3, 2024 and sell it today you would earn a total of 122.00 from holding SwissCom AG or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
SwissCom AG vs. Publicis Groupe SA
Performance |
| Timeline |
| SwissCom AG |
| Publicis Groupe SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SwissCom and Publicis Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SwissCom and Publicis Groupe
The main advantage of trading using opposite SwissCom and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SwissCom position performs unexpectedly, Publicis 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 Publicis Groupe will offset losses from the drop in Publicis Groupe's long position.| SwissCom vs. Telecom Argentina SA | SwissCom vs. Rogers Communications | SwissCom vs. Magyar Telekom Plc | SwissCom vs. Hellenic Telecommunications Org |
| Publicis Groupe vs. SwissCom AG | Publicis Groupe vs. Compagnie de Saint Gobain | Publicis Groupe vs. Vinci SA ADR | Publicis Groupe vs. Compagnie Generale des |
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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