Correlation Between Groupe Sfpi and Chargeurs
Can any of the company-specific risk be diversified away by investing in both Groupe Sfpi and Chargeurs 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 Chargeurs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Sfpi and Chargeurs SA, you can compare the effects of market volatilities on Groupe Sfpi and Chargeurs 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 Chargeurs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Sfpi and Chargeurs.
Diversification Opportunities for Groupe Sfpi and Chargeurs
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Groupe and Chargeurs is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Sfpi and Chargeurs SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chargeurs 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 Chargeurs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chargeurs SA has no effect on the direction of Groupe Sfpi i.e., Groupe Sfpi and Chargeurs go up and down completely randomly.
Pair Corralation between Groupe Sfpi and Chargeurs
Assuming the 90 days trading horizon Groupe Sfpi is expected to generate 0.84 times more return on investment than Chargeurs. However, Groupe Sfpi is 1.19 times less risky than Chargeurs. It trades about 0.01 of its potential returns per unit of risk. Chargeurs SA is currently generating about -0.01 per unit of risk. If you would invest 205.00 in Groupe Sfpi on September 3, 2024 and sell it today you would lose (12.00) from holding Groupe Sfpi or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Sfpi vs. Chargeurs SA
Performance |
| Timeline |
| Groupe Sfpi |
| Chargeurs SA |
Groupe Sfpi and Chargeurs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Sfpi and Chargeurs
The main advantage of trading using opposite Groupe Sfpi and Chargeurs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Sfpi position performs unexpectedly, Chargeurs 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 Chargeurs will offset losses from the drop in Chargeurs' 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 |
| Chargeurs vs. Derichebourg | Chargeurs vs. Trigano SA | Chargeurs vs. Rubis SCA | Chargeurs vs. BigBen Interactive |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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