Correlation Between Groupe Sfpi and Delfingen
Can any of the company-specific risk be diversified away by investing in both Groupe Sfpi and Delfingen 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 Delfingen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Sfpi and Delfingen, you can compare the effects of market volatilities on Groupe Sfpi and Delfingen 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 Delfingen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Sfpi and Delfingen.
Diversification Opportunities for Groupe Sfpi and Delfingen
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Groupe and Delfingen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Sfpi and Delfingen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delfingen 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 Delfingen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delfingen has no effect on the direction of Groupe Sfpi i.e., Groupe Sfpi and Delfingen go up and down completely randomly.
Pair Corralation between Groupe Sfpi and Delfingen
Assuming the 90 days trading horizon Groupe Sfpi is expected to generate 0.69 times more return on investment than Delfingen. However, Groupe Sfpi is 1.45 times less risky than Delfingen. It trades about 0.02 of its potential returns per unit of risk. Delfingen is currently generating about -0.14 per unit of risk. If you would invest 179.00 in Groupe Sfpi on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Groupe Sfpi or generate 7.26% 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. Delfingen
Performance |
| Timeline |
| Groupe Sfpi |
| Delfingen |
Groupe Sfpi and Delfingen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Sfpi and Delfingen
The main advantage of trading using opposite Groupe Sfpi and Delfingen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Sfpi position performs unexpectedly, Delfingen 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 Delfingen will offset losses from the drop in Delfingen'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 |
| Delfingen vs. Akwel SA | Delfingen vs. Groupe Guillin SA | Delfingen vs. Burelle SA | Delfingen vs. SA Catana Group |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |