Correlation Between Voltalia and Groupe Guillin
Can any of the company-specific risk be diversified away by investing in both Voltalia and Groupe Guillin 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 Voltalia and Groupe Guillin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voltalia SA and Groupe Guillin SA, you can compare the effects of market volatilities on Voltalia and Groupe Guillin 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 Voltalia with a short position of Groupe Guillin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voltalia and Groupe Guillin.
Diversification Opportunities for Voltalia and Groupe Guillin
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Voltalia and Groupe is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Voltalia SA and Groupe Guillin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Guillin SA and Voltalia 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 Voltalia SA are associated (or correlated) with Groupe Guillin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Guillin SA has no effect on the direction of Voltalia i.e., Voltalia and Groupe Guillin go up and down completely randomly.
Pair Corralation between Voltalia and Groupe Guillin
Assuming the 90 days trading horizon Voltalia SA is expected to under-perform the Groupe Guillin. In addition to that, Voltalia is 3.44 times more volatile than Groupe Guillin SA. It trades about -0.17 of its total potential returns per unit of risk. Groupe Guillin SA is currently generating about -0.26 per unit of volatility. If you would invest 2,740 in Groupe Guillin SA on September 2, 2024 and sell it today you would lose (145.00) from holding Groupe Guillin SA or give up 5.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voltalia SA vs. Groupe Guillin SA
Performance |
| Timeline |
| Voltalia SA |
| Groupe Guillin SA |
Voltalia and Groupe Guillin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voltalia and Groupe Guillin
The main advantage of trading using opposite Voltalia and Groupe Guillin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voltalia position performs unexpectedly, Groupe Guillin 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 Guillin will offset losses from the drop in Groupe Guillin's long position.The idea behind Voltalia SA and Groupe Guillin SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Groupe Guillin vs. Voltalia SA | Groupe Guillin vs. Ecoslops SA | Groupe Guillin vs. Agripower France Sa | Groupe Guillin vs. Enertime SAS |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |