Correlation Between Groupe Guillin and Piscines Desjoyaux

Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and Piscines Desjoyaux 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 Groupe Guillin and Piscines Desjoyaux into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Groupe Guillin SA and Piscines Desjoyaux SA, you can compare the effects of market volatilities on Groupe Guillin and Piscines Desjoyaux 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 Groupe Guillin with a short position of Piscines Desjoyaux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and Piscines Desjoyaux.

Diversification Opportunities for Groupe Guillin and Piscines Desjoyaux

0.73

Correlation Coefficient

Groupe Guillin  Piscines Desjoyaux

Poor diversification

The 3 months correlation between Groupe and Piscines is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Piscines Desjoyaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piscines Desjoyaux and Groupe Guillin 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 Groupe Guillin SA are associated (or correlated) with Piscines Desjoyaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piscines Desjoyaux has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Piscines Desjoyaux go up and down completely randomly.

Pair Corralation between Groupe Guillin and Piscines Desjoyaux

Assuming the 90 days trading horizon Groupe Guillin SA is expected to under-perform the Piscines Desjoyaux. In addition to that, Groupe Guillin is 1.06 times more volatile than Piscines Desjoyaux SA. It trades about -0.2 of its total potential returns per unit of risk. Piscines Desjoyaux SA is currently generating about -0.03 per unit of volatility. If you would invest  1,250  in Piscines Desjoyaux SA on September 3, 2024 and sell it today you would lose (30.00) from holding Piscines Desjoyaux SA or give up 2.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Groupe Guillin SA  vs.  Piscines Desjoyaux SA

Groupe Guillin SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Groupe Guillin SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Piscines Desjoyaux

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Piscines Desjoyaux SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Piscines Desjoyaux is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Groupe Guillin and Piscines Desjoyaux

The main advantage of trading using opposite Groupe Guillin and Piscines Desjoyaux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Guillin position performs unexpectedly, Piscines Desjoyaux 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 Piscines Desjoyaux will offset losses from the drop in Piscines Desjoyaux's long position.

The idea behind Groupe Guillin SA and Piscines Desjoyaux 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.