Correlation Between Gaussin and Dolfines SAS

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

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

Diversification Opportunities for Gaussin and Dolfines SAS

0.0

Correlation Coefficient

Gaussin  Dolfines SAS

Pay attention - limited upside

The 3 months correlation between Gaussin and Dolfines is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gaussin and Dolfines SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolfines SAS and Gaussin 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 Gaussin are associated (or correlated) with Dolfines SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolfines SAS has no effect on the direction of Gaussin i.e., Gaussin and Dolfines SAS go up and down completely randomly.

Pair Corralation between Gaussin and Dolfines SAS

If you would invest  180.00  in Dolfines SAS on December 5, 2024 and sell it today you would earn a total of  50.00  from holding Dolfines SAS or generate 27.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gaussin  vs.  Dolfines SAS

Gaussin

Risk-Adjusted Performance

Very Weak

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

Dolfines SAS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dolfines SAS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Dolfines SAS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gaussin and Dolfines SAS

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

The idea behind Gaussin and Dolfines SAS 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.