Correlation Between Waga Energy and Groupe Sfpi
Can any of the company-specific risk be diversified away by investing in both Waga Energy and Groupe Sfpi 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 Waga Energy and Groupe Sfpi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waga Energy SA and Groupe Sfpi, you can compare the effects of market volatilities on Waga Energy and Groupe Sfpi 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 Waga Energy with a short position of Groupe Sfpi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waga Energy and Groupe Sfpi.
Diversification Opportunities for Waga Energy and Groupe Sfpi
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Waga and Groupe is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Waga Energy SA and Groupe Sfpi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Sfpi and Waga Energy 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 Waga Energy SA are associated (or correlated) with Groupe Sfpi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Sfpi has no effect on the direction of Waga Energy i.e., Waga Energy and Groupe Sfpi go up and down completely randomly.
Pair Corralation between Waga Energy and Groupe Sfpi
Assuming the 90 days trading horizon Waga Energy SA is expected to under-perform the Groupe Sfpi. In addition to that, Waga Energy is 1.66 times more volatile than Groupe Sfpi. It trades about -0.07 of its total potential returns per unit of risk. Groupe Sfpi is currently generating about 0.02 per unit of volatility. If you would invest 188.00 in Groupe Sfpi on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Groupe Sfpi or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Waga Energy SA vs. Groupe Sfpi
Performance |
| Timeline |
| Waga Energy SA |
| Groupe Sfpi |
Waga Energy and Groupe Sfpi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waga Energy and Groupe Sfpi
The main advantage of trading using opposite Waga Energy and Groupe Sfpi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waga Energy position performs unexpectedly, Groupe Sfpi 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 Sfpi will offset losses from the drop in Groupe Sfpi's long position.| Waga Energy vs. OVH Groupe SAS | Waga Energy vs. Hydrogene De France | Waga Energy vs. Neoen SA | Waga Energy vs. Haffner Energy SA |
| Groupe Sfpi vs. Groupe Guillin SA | Groupe Sfpi vs. Stef SA | Groupe Sfpi vs. SA Catana Group | Groupe Sfpi vs. Jacquet Metal Service |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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