Correlation Between Groupe Guillin and Aubay Socit

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

Diversification Opportunities for Groupe Guillin and Aubay Socit

-0.01

Correlation Coefficient

Groupe Guillin  Aubay Socit

Good diversification

The 3 months correlation between Groupe and Aubay is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Aubay Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aubay Socit Anonyme 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 Aubay Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aubay Socit Anonyme has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Aubay Socit go up and down completely randomly.

Pair Corralation between Groupe Guillin and Aubay Socit

Assuming the 90 days trading horizon Groupe Guillin SA is expected to under-perform the Aubay Socit. But the stock apears to be less risky and, when comparing its historical volatility, Groupe Guillin SA is 1.08 times less risky than Aubay Socit. The stock trades about 0.0 of its potential returns per unit of risk. The Aubay Socit Anonyme is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  4,435  in Aubay Socit Anonyme on December 24, 2024 and sell it today you would earn a total of  320.00  from holding Aubay Socit Anonyme or generate 7.22% return on investment over 90 days.

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

Groupe Guillin SA  vs.  Aubay Socit Anonyme

Groupe Guillin SA

Risk-Adjusted Performance

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 relatively invariable basic indicators, Groupe Guillin is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Aubay Socit Anonyme

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aubay Socit Anonyme are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Aubay Socit may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Groupe Guillin and Aubay Socit

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

The idea behind Groupe Guillin SA and Aubay Socit Anonyme 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.