Correlation Between Groupe Guillin and Witbe Net

Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and Witbe Net 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 Witbe Net 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 Witbe Net SA, you can compare the effects of market volatilities on Groupe Guillin and Witbe Net 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 Witbe Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and Witbe Net.

Diversification Opportunities for Groupe Guillin and Witbe Net

-0.46

Correlation Coefficient

Groupe Guillin  Witbe Net

Very good diversification

The 3 months correlation between Groupe and Witbe is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Witbe Net SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Witbe Net 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 Witbe Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Witbe Net SA has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Witbe Net go up and down completely randomly.

Pair Corralation between Groupe Guillin and Witbe Net

Assuming the 90 days trading horizon Groupe Guillin SA is expected to generate 0.35 times more return on investment than Witbe Net. However, Groupe Guillin SA is 2.84 times less risky than Witbe Net. It trades about 0.02 of its potential returns per unit of risk. Witbe Net SA is currently generating about -0.12 per unit of risk. If you would invest  2,685  in Groupe Guillin SA on September 17, 2024 and sell it today you would earn a total of  10.00  from holding Groupe Guillin SA or generate 0.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Groupe Guillin SA  vs.  Witbe Net 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 latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Witbe Net SA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Groupe Guillin and Witbe Net

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

The idea behind Groupe Guillin SA and Witbe Net 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.