Correlation Between Groupe Sfpi and Guillemot
Can any of the company-specific risk be diversified away by investing in both Groupe Sfpi and Guillemot 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 Guillemot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Sfpi and Guillemot SA, you can compare the effects of market volatilities on Groupe Sfpi and Guillemot 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 Guillemot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Sfpi and Guillemot.
Diversification Opportunities for Groupe Sfpi and Guillemot
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Groupe and Guillemot is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Sfpi and Guillemot SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guillemot 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 Guillemot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guillemot SA has no effect on the direction of Groupe Sfpi i.e., Groupe Sfpi and Guillemot go up and down completely randomly.
Pair Corralation between Groupe Sfpi and Guillemot
Assuming the 90 days trading horizon Groupe Sfpi is expected to under-perform the Guillemot. But the stock apears to be less risky and, when comparing its historical volatility, Groupe Sfpi is 1.26 times less risky than Guillemot. The stock trades about -0.15 of its potential returns per unit of risk. The Guillemot SA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Guillemot SA on September 1, 2024 and sell it today you would lose (10.00) from holding Guillemot SA or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Sfpi vs. Guillemot SA
Performance |
| Timeline |
| Groupe Sfpi |
| Guillemot SA |
Groupe Sfpi and Guillemot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Sfpi and Guillemot
The main advantage of trading using opposite Groupe Sfpi and Guillemot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Sfpi position performs unexpectedly, Guillemot 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 Guillemot will offset losses from the drop in Guillemot'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 |
| Guillemot vs. Claranova SE | Guillemot vs. SA Catana Group | Guillemot vs. Neurones | Guillemot vs. Groupe Guillin 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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