Correlation Between Thermador Groupe and Gascogne
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Gascogne 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 Thermador Groupe and Gascogne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermador Groupe SA and Gascogne SA, you can compare the effects of market volatilities on Thermador Groupe and Gascogne 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 Thermador Groupe with a short position of Gascogne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Gascogne.
Diversification Opportunities for Thermador Groupe and Gascogne
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thermador and Gascogne is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Gascogne SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gascogne SA and Thermador 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 Thermador Groupe SA are associated (or correlated) with Gascogne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gascogne SA has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Gascogne go up and down completely randomly.
Pair Corralation between Thermador Groupe and Gascogne
Assuming the 90 days trading horizon Thermador Groupe SA is expected to generate 0.91 times more return on investment than Gascogne. However, Thermador Groupe SA is 1.1 times less risky than Gascogne. It trades about 0.18 of its potential returns per unit of risk. Gascogne SA is currently generating about -0.03 per unit of risk. If you would invest 6,830 in Thermador Groupe SA on October 1, 2024 and sell it today you would earn a total of 350.00 from holding Thermador Groupe SA or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermador Groupe SA vs. Gascogne SA
Performance |
| Timeline |
| Thermador Groupe |
| Gascogne SA |
Thermador Groupe and Gascogne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Gascogne
The main advantage of trading using opposite Thermador Groupe and Gascogne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Gascogne 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 Gascogne will offset losses from the drop in Gascogne's long position.| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Aubay Socit Anonyme | Thermador Groupe vs. Virbac SA |
| Gascogne vs. SA Catana Group | Gascogne vs. Poujoulat SA | Gascogne vs. Piscines Desjoyaux SA | Gascogne vs. Reworld Media |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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