Correlation Between Groupe Sfpi and Cogra 48
Can any of the company-specific risk be diversified away by investing in both Groupe Sfpi and Cogra 48 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 Groupe Sfpi and Cogra 48 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Sfpi and Cogra 48 Socit, you can compare the effects of market volatilities on Groupe Sfpi and Cogra 48 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 Groupe Sfpi with a short position of Cogra 48. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Sfpi and Cogra 48.
Diversification Opportunities for Groupe Sfpi and Cogra 48
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Groupe and Cogra is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Sfpi and Cogra 48 Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogra 48 Socit and Groupe Sfpi 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 Groupe Sfpi are associated (or correlated) with Cogra 48. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogra 48 Socit has no effect on the direction of Groupe Sfpi i.e., Groupe Sfpi and Cogra 48 go up and down completely randomly.
Pair Corralation between Groupe Sfpi and Cogra 48
Assuming the 90 days trading horizon Groupe Sfpi is expected to generate 0.94 times more return on investment than Cogra 48. However, Groupe Sfpi is 1.06 times less risky than Cogra 48. It trades about -0.05 of its potential returns per unit of risk. Cogra 48 Socit is currently generating about -0.05 per unit of risk. If you would invest 200.00 in Groupe Sfpi on October 23, 2024 and sell it today you would lose (8.00) from holding Groupe Sfpi or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Groupe Sfpi vs. Cogra 48 Socit
Performance |
| Timeline |
| Groupe Sfpi |
| Cogra 48 Socit |
Groupe Sfpi and Cogra 48 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Sfpi and Cogra 48
The main advantage of trading using opposite Groupe Sfpi and Cogra 48 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Sfpi position performs unexpectedly, Cogra 48 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 Cogra 48 will offset losses from the drop in Cogra 48's long position.| Groupe Sfpi vs. Groupe Guillin SA | Groupe Sfpi vs. Stef SA | Groupe Sfpi vs. SA Catana Group | Groupe Sfpi vs. Jacquet Metal Service |
| Cogra 48 vs. Moulinvest | Cogra 48 vs. Poujoulat SA | Cogra 48 vs. Delfingen | Cogra 48 vs. Jacquet Metal Service |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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