Correlation Between Worldline and Guerbet S
Can any of the company-specific risk be diversified away by investing in both Worldline and Guerbet S 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 Worldline and Guerbet S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worldline SA and Guerbet S A, you can compare the effects of market volatilities on Worldline and Guerbet S 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 Worldline with a short position of Guerbet S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worldline and Guerbet S.
Diversification Opportunities for Worldline and Guerbet S
Excellent diversification
The 3 months correlation between Worldline and Guerbet is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Worldline SA and Guerbet S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guerbet S A and Worldline 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 Worldline SA are associated (or correlated) with Guerbet S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guerbet S A has no effect on the direction of Worldline i.e., Worldline and Guerbet S go up and down completely randomly.
Pair Corralation between Worldline and Guerbet S
Assuming the 90 days trading horizon Worldline SA is expected to generate 1.84 times more return on investment than Guerbet S. However, Worldline is 1.84 times more volatile than Guerbet S A. It trades about 0.1 of its potential returns per unit of risk. Guerbet S A is currently generating about -0.1 per unit of risk. If you would invest 631.00 in Worldline SA on October 26, 2024 and sell it today you would earn a total of 134.00 from holding Worldline SA or generate 21.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Worldline SA vs. Guerbet S A
Performance |
| Timeline |
| Worldline SA |
| Guerbet S A |
Worldline and Guerbet S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worldline and Guerbet S
The main advantage of trading using opposite Worldline and Guerbet S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worldline position performs unexpectedly, Guerbet S 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 Guerbet S will offset losses from the drop in Guerbet S's long position.| Worldline vs. Atos SE | Worldline vs. Teleperformance SE | Worldline vs. Dassault Systemes SE | Worldline vs. Capgemini SE |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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