Correlation Between SRP Groupe and Kerlink SAS
Can any of the company-specific risk be diversified away by investing in both SRP Groupe and Kerlink SAS 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 SRP Groupe and Kerlink SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SRP Groupe SA and Kerlink SAS, you can compare the effects of market volatilities on SRP Groupe and Kerlink SAS 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 SRP Groupe with a short position of Kerlink SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SRP Groupe and Kerlink SAS.
Diversification Opportunities for SRP Groupe and Kerlink SAS
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SRP and Kerlink is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SRP Groupe SA and Kerlink SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerlink SAS and SRP Groupe 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 SRP Groupe SA are associated (or correlated) with Kerlink SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerlink SAS has no effect on the direction of SRP Groupe i.e., SRP Groupe and Kerlink SAS go up and down completely randomly.
Pair Corralation between SRP Groupe and Kerlink SAS
Assuming the 90 days trading horizon SRP Groupe SA is expected to under-perform the Kerlink SAS. But the stock apears to be less risky and, when comparing its historical volatility, SRP Groupe SA is 2.04 times less risky than Kerlink SAS. The stock trades about -0.03 of its potential returns per unit of risk. The Kerlink SAS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 53.00 in Kerlink SAS on January 16, 2025 and sell it today you would earn a total of 3.00 from holding Kerlink SAS or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SRP Groupe SA vs. Kerlink SAS
Performance |
| Timeline |
| SRP Groupe SA |
| Kerlink SAS |
SRP Groupe and Kerlink SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SRP Groupe and Kerlink SAS
The main advantage of trading using opposite SRP Groupe and Kerlink SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SRP Groupe position performs unexpectedly, Kerlink SAS 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 Kerlink SAS will offset losses from the drop in Kerlink SAS's long position.| SRP Groupe vs. Maisons du Monde | SRP Groupe vs. Claranova SE | SRP Groupe vs. Smcp SAS | SRP Groupe vs. Solocal Group SA |
| Kerlink SAS vs. Melexis NV | Kerlink SAS vs. ageas SANV | Kerlink SAS vs. Sofina Socit Anonyme | Kerlink SAS vs. Barco NV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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