Correlation Between Groupe Sfpi and Damartex
Can any of the company-specific risk be diversified away by investing in both Groupe Sfpi and Damartex 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 Damartex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Sfpi and Damartex, you can compare the effects of market volatilities on Groupe Sfpi and Damartex 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 Damartex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Sfpi and Damartex.
Diversification Opportunities for Groupe Sfpi and Damartex
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Groupe and Damartex is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Sfpi and Damartex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damartex 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 Damartex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Damartex has no effect on the direction of Groupe Sfpi i.e., Groupe Sfpi and Damartex go up and down completely randomly.
Pair Corralation between Groupe Sfpi and Damartex
Assuming the 90 days trading horizon Groupe Sfpi is expected to under-perform the Damartex. But the stock apears to be less risky and, when comparing its historical volatility, Groupe Sfpi is 2.21 times less risky than Damartex. The stock trades about -0.03 of its potential returns per unit of risk. The Damartex is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 316.00 in Damartex on September 2, 2024 and sell it today you would earn a total of 258.00 from holding Damartex or generate 81.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Sfpi vs. Damartex
Performance |
| Timeline |
| Groupe Sfpi |
| Damartex |
Groupe Sfpi and Damartex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Sfpi and Damartex
The main advantage of trading using opposite Groupe Sfpi and Damartex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Sfpi position performs unexpectedly, Damartex 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 Damartex will offset losses from the drop in Damartex'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 |
| Damartex vs. Chargeurs SA | Damartex vs. Delfingen | Damartex vs. BigBen Interactive | Damartex vs. Guerbet S A |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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