Correlation Between Groupe Sfpi and Streamwide
Can any of the company-specific risk be diversified away by investing in both Groupe Sfpi and Streamwide 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 Streamwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Sfpi and Streamwide, you can compare the effects of market volatilities on Groupe Sfpi and Streamwide 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 Streamwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Sfpi and Streamwide.
Diversification Opportunities for Groupe Sfpi and Streamwide
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Groupe and Streamwide is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Sfpi and Streamwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamwide 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 Streamwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamwide has no effect on the direction of Groupe Sfpi i.e., Groupe Sfpi and Streamwide go up and down completely randomly.
Pair Corralation between Groupe Sfpi and Streamwide
Assuming the 90 days trading horizon Groupe Sfpi is expected to under-perform the Streamwide. But the stock apears to be less risky and, when comparing its historical volatility, Groupe Sfpi is 1.27 times less risky than Streamwide. The stock trades about -0.05 of its potential returns per unit of risk. The Streamwide is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,850 in Streamwide on October 23, 2024 and sell it today you would earn a total of 420.00 from holding Streamwide or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
Groupe Sfpi vs. Streamwide
Performance |
| Timeline |
| Groupe Sfpi |
| Streamwide |
Groupe Sfpi and Streamwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Sfpi and Streamwide
The main advantage of trading using opposite Groupe Sfpi and Streamwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Sfpi position performs unexpectedly, Streamwide 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 Streamwide will offset losses from the drop in Streamwide'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 |
| Streamwide vs. Sidetrade | Streamwide vs. Esker SA | Streamwide vs. Xilam Animation | Streamwide vs. Ekinops 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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