Correlation Between Groupe Minoteries and Carlo Gavazzi
Can any of the company-specific risk be diversified away by investing in both Groupe Minoteries and Carlo Gavazzi 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 Minoteries and Carlo Gavazzi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Minoteries SA and Carlo Gavazzi Holding, you can compare the effects of market volatilities on Groupe Minoteries and Carlo Gavazzi 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 Minoteries with a short position of Carlo Gavazzi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Minoteries and Carlo Gavazzi.
Diversification Opportunities for Groupe Minoteries and Carlo Gavazzi
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Groupe and Carlo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Minoteries SA and Carlo Gavazzi Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlo Gavazzi Holding and Groupe Minoteries 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 Minoteries SA are associated (or correlated) with Carlo Gavazzi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlo Gavazzi Holding has no effect on the direction of Groupe Minoteries i.e., Groupe Minoteries and Carlo Gavazzi go up and down completely randomly.
Pair Corralation between Groupe Minoteries and Carlo Gavazzi
Assuming the 90 days trading horizon Groupe Minoteries SA is expected to generate 0.85 times more return on investment than Carlo Gavazzi. However, Groupe Minoteries SA is 1.18 times less risky than Carlo Gavazzi. It trades about 0.17 of its potential returns per unit of risk. Carlo Gavazzi Holding is currently generating about -0.11 per unit of risk. If you would invest 22,000 in Groupe Minoteries SA on September 27, 2024 and sell it today you would earn a total of 4,800 from holding Groupe Minoteries SA or generate 21.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.72% |
Values | Daily Returns |
Groupe Minoteries SA vs. Carlo Gavazzi Holding
Performance |
Timeline |
Groupe Minoteries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Carlo Gavazzi Holding |
Groupe Minoteries and Carlo Gavazzi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Groupe Minoteries and Carlo Gavazzi
The main advantage of trading using opposite Groupe Minoteries and Carlo Gavazzi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Minoteries position performs unexpectedly, Carlo Gavazzi 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 Carlo Gavazzi will offset losses from the drop in Carlo Gavazzi's long position.Groupe Minoteries vs. Carlo Gavazzi Holding | ||
Groupe Minoteries vs. Emmi AG | ||
Groupe Minoteries vs. Cicor Technologies | ||
Groupe Minoteries vs. Lem Holding SA |
Carlo Gavazzi vs. Bucher Industries AG | ||
Carlo Gavazzi vs. Burkhalter Holding AG | ||
Carlo Gavazzi vs. mobilezone ag | ||
Carlo Gavazzi vs. Also Holding AG |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |