Correlation Between Unibel SA and Groupe Partouche
Can any of the company-specific risk be diversified away by investing in both Unibel SA and Groupe Partouche 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 Unibel SA and Groupe Partouche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unibel SA and Groupe Partouche SA, you can compare the effects of market volatilities on Unibel SA and Groupe Partouche 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 Unibel SA with a short position of Groupe Partouche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unibel SA and Groupe Partouche.
Diversification Opportunities for Unibel SA and Groupe Partouche
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Unibel and Groupe is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Unibel SA and Groupe Partouche SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Partouche and Unibel SA 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 Unibel SA are associated (or correlated) with Groupe Partouche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Partouche has no effect on the direction of Unibel SA i.e., Unibel SA and Groupe Partouche go up and down completely randomly.
Pair Corralation between Unibel SA and Groupe Partouche
Assuming the 90 days trading horizon Unibel SA is expected to generate 0.3 times more return on investment than Groupe Partouche. However, Unibel SA is 3.32 times less risky than Groupe Partouche. It trades about 0.13 of its potential returns per unit of risk. Groupe Partouche SA is currently generating about -0.24 per unit of risk. If you would invest 97,000 in Unibel SA on November 27, 2024 and sell it today you would earn a total of 1,500 from holding Unibel SA or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unibel SA vs. Groupe Partouche SA
Performance |
| Timeline |
| Unibel SA |
| Groupe Partouche |
Unibel SA and Groupe Partouche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unibel SA and Groupe Partouche
The main advantage of trading using opposite Unibel SA and Groupe Partouche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unibel SA position performs unexpectedly, Groupe Partouche 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 Groupe Partouche will offset losses from the drop in Groupe Partouche's long position.| Unibel SA vs. Savencia SA | Unibel SA vs. Societe LDC SA | Unibel SA vs. Robertet SA | Unibel SA vs. Malteries Franco Belges Socit |
| Groupe Partouche vs. Passat Socit Anonyme | Groupe Partouche vs. Plastiques du Val | Groupe Partouche vs. NRJ Group | Groupe Partouche vs. Haulotte Group 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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