Correlation Between Hitechpros and Groupe Guillin

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

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

Diversification Opportunities for Hitechpros and Groupe Guillin

0.08

Correlation Coefficient

Hitechpros  Groupe Guillin

Significant diversification

The 3 months correlation between Hitechpros and Groupe is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hitechpros and Groupe Guillin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Guillin SA and Hitechpros 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 Hitechpros are associated (or correlated) with Groupe Guillin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Guillin SA has no effect on the direction of Hitechpros i.e., Hitechpros and Groupe Guillin go up and down completely randomly.

Pair Corralation between Hitechpros and Groupe Guillin

Assuming the 90 days trading horizon Hitechpros is expected to generate 1.15 times more return on investment than Groupe Guillin. However, Hitechpros is 1.15 times more volatile than Groupe Guillin SA. It trades about 0.04 of its potential returns per unit of risk. Groupe Guillin SA is currently generating about 0.03 per unit of risk. If you would invest  1,256  in Hitechpros on December 2, 2024 and sell it today you would earn a total of  304.00  from holding Hitechpros or generate 24.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	83.53%
Values	Daily Returns

Hitechpros  vs.  Groupe Guillin SA

Hitechpros

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hitechpros are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Hitechpros is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Groupe Guillin SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Guillin SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Groupe Guillin may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Hitechpros and Groupe Guillin

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

The idea behind Hitechpros and Groupe Guillin 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.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.