Correlation Between Groupe Sfpi and Groupe Guillin
Can any of the company-specific risk be diversified away by investing in both Groupe Sfpi and Groupe Guillin 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 Groupe Guillin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Sfpi and Groupe Guillin SA, you can compare the effects of market volatilities on Groupe Sfpi and Groupe Guillin 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 Groupe Guillin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Sfpi and Groupe Guillin.
Diversification Opportunities for Groupe Sfpi and Groupe Guillin
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Groupe and Groupe is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Sfpi and Groupe Guillin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Guillin SA 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 Groupe Guillin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Guillin SA has no effect on the direction of Groupe Sfpi i.e., Groupe Sfpi and Groupe Guillin go up and down completely randomly.
Pair Corralation between Groupe Sfpi and Groupe Guillin
Assuming the 90 days trading horizon Groupe Sfpi is expected to generate 1.87 times more return on investment than Groupe Guillin. However, Groupe Sfpi is 1.87 times more volatile than Groupe Guillin SA. It trades about -0.08 of its potential returns per unit of risk. Groupe Guillin SA is currently generating about -0.19 per unit of risk. If you would invest 205.00 in Groupe Sfpi on August 28, 2024 and sell it today you would lose (8.00) from holding Groupe Sfpi or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Sfpi vs. Groupe Guillin SA
Performance |
| Timeline |
| Groupe Sfpi |
| Groupe Guillin SA |
Groupe Sfpi and Groupe Guillin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Sfpi and Groupe Guillin
The main advantage of trading using opposite Groupe Sfpi and Groupe Guillin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Sfpi position performs unexpectedly, Groupe Guillin 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 Groupe Guillin will offset losses from the drop in Groupe Guillin'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 |
| Groupe Guillin vs. Neurones | Groupe Guillin vs. Aubay Socit Anonyme | Groupe Guillin vs. Infotel SA | Groupe Guillin vs. Manitou BF SA |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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