Correlation Between Groupe Guillin and Txcom SA
Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and Txcom SA 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 Txcom SA 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 Txcom SA, you can compare the effects of market volatilities on Groupe Guillin and Txcom SA 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 Txcom SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and Txcom SA.
Diversification Opportunities for Groupe Guillin and Txcom SA
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Groupe and Txcom is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Txcom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Txcom SA 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 Txcom SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Txcom SA has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Txcom SA go up and down completely randomly.
Pair Corralation between Groupe Guillin and Txcom SA
Assuming the 90 days trading horizon Groupe Guillin SA is expected to generate 1.86 times more return on investment than Txcom SA. However, Groupe Guillin is 1.86 times more volatile than Txcom SA. It trades about 0.2 of its potential returns per unit of risk. Txcom SA is currently generating about -0.07 per unit of risk. If you would invest 2,600 in Groupe Guillin SA on September 25, 2024 and sell it today you would earn a total of 145.00 from holding Groupe Guillin SA or generate 5.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Groupe Guillin SA vs. Txcom SA
Performance |
Timeline |
Groupe Guillin SA |
Txcom SA |
Groupe Guillin and Txcom SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Groupe Guillin and Txcom SA
The main advantage of trading using opposite Groupe Guillin and Txcom SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Guillin position performs unexpectedly, Txcom SA 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 Txcom SA will offset losses from the drop in Txcom SA's long position.Groupe Guillin vs. SA Catana Group | Groupe Guillin vs. Poujoulat SA | Groupe Guillin vs. Piscines Desjoyaux SA | Groupe Guillin vs. Reworld Media |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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