Correlation Between I2S SA and Grard Perrier

Can any of the company-specific risk be diversified away by investing in both I2S SA and Grard Perrier 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 I2S SA and Grard Perrier into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between i2S SA and Grard Perrier Industrie, you can compare the effects of market volatilities on I2S SA and Grard Perrier 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 I2S SA with a short position of Grard Perrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of I2S SA and Grard Perrier.

Diversification Opportunities for I2S SA and Grard Perrier

0.4

Correlation Coefficient

I2S SA  Grard Perrier

Very weak diversification

The 3 months correlation between I2S and Grard is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding i2S SA and Grard Perrier Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grard Perrier Industrie and I2S SA 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 i2S SA are associated (or correlated) with Grard Perrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grard Perrier Industrie has no effect on the direction of I2S SA i.e., I2S SA and Grard Perrier go up and down completely randomly.

Pair Corralation between I2S SA and Grard Perrier

Assuming the 90 days trading horizon i2S SA is expected to under-perform the Grard Perrier. In addition to that, I2S SA is 3.31 times more volatile than Grard Perrier Industrie. It trades about -0.06 of its total potential returns per unit of risk. Grard Perrier Industrie is currently generating about -0.1 per unit of volatility. If you would invest  8,900  in Grard Perrier Industrie on December 29, 2024 and sell it today you would lose (680.00) from holding Grard Perrier Industrie or give up 7.64% of portfolio value over 90 days.

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

i2S SA  vs.  Grard Perrier Industrie

i2S SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days i2S SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Grard Perrier Industrie

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grard Perrier Industrie has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with I2S SA and Grard Perrier

The main advantage of trading using opposite I2S SA and Grard Perrier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I2S SA position performs unexpectedly, Grard Perrier 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 Grard Perrier will offset losses from the drop in Grard Perrier's long position.

The idea behind i2S SA and Grard Perrier Industrie 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.