Correlation Between Superior Plus and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Publicis Groupe 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 Superior Plus and Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Publicis Groupe SA, you can compare the effects of market volatilities on Superior Plus and Publicis Groupe 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 Superior Plus with a short position of Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Publicis Groupe.
Diversification Opportunities for Superior Plus and Publicis Groupe
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and Publicis is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe SA and Superior Plus 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 Superior Plus Corp are associated (or correlated) with Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of Superior Plus i.e., Superior Plus and Publicis Groupe go up and down completely randomly.
Pair Corralation between Superior Plus and Publicis Groupe
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Publicis Groupe. In addition to that, Superior Plus is 1.98 times more volatile than Publicis Groupe SA. It trades about -0.03 of its total potential returns per unit of risk. Publicis Groupe SA is currently generating about 0.09 per unit of volatility. If you would invest 9,530 in Publicis Groupe SA on September 13, 2024 and sell it today you would earn a total of 890.00 from holding Publicis Groupe SA or generate 9.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Superior Plus Corp vs. Publicis Groupe SA
Performance |
Timeline |
Superior Plus Corp |
Publicis Groupe SA |
Superior Plus and Publicis Groupe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Superior Plus and Publicis Groupe
The main advantage of trading using opposite Superior Plus and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Publicis Groupe 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 Publicis Groupe will offset losses from the drop in Publicis Groupe's long position.Superior Plus vs. HF SINCLAIR P | Superior Plus vs. PT Indofood Sukses | Superior Plus vs. SENECA FOODS A | Superior Plus vs. ScanSource |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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