Correlation Between Groupimo and Valbiotis SAS

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Groupimo and Valbiotis 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 Groupimo and Valbiotis SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupimo SA and Valbiotis SAS, you can compare the effects of market volatilities on Groupimo and Valbiotis 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 Groupimo with a short position of Valbiotis SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupimo and Valbiotis SAS.

Diversification Opportunities for Groupimo and Valbiotis SAS

-0.7
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Groupimo and Valbiotis is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Groupimo SA and Valbiotis SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valbiotis SAS and Groupimo 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 Groupimo SA are associated (or correlated) with Valbiotis SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valbiotis SAS has no effect on the direction of Groupimo i.e., Groupimo and Valbiotis SAS go up and down completely randomly.

Pair Corralation between Groupimo and Valbiotis SAS

Assuming the 90 days trading horizon Groupimo SA is expected to generate 3.44 times more return on investment than Valbiotis SAS. However, Groupimo is 3.44 times more volatile than Valbiotis SAS. It trades about 0.06 of its potential returns per unit of risk. Valbiotis SAS is currently generating about 0.04 per unit of risk. If you would invest  20.00  in Groupimo SA on September 26, 2024 and sell it today you would lose (1.00) from holding Groupimo SA or give up 5.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Groupimo SA  vs.  Valbiotis SAS

 Performance 
       Timeline  
Groupimo SA 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Groupimo SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Groupimo reported solid returns over the last few months and may actually be approaching a breakup point.
Valbiotis SAS 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Valbiotis SAS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Valbiotis SAS may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Groupimo and Valbiotis SAS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Groupimo and Valbiotis SAS

The main advantage of trading using opposite Groupimo and Valbiotis SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupimo position performs unexpectedly, Valbiotis 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 Valbiotis SAS will offset losses from the drop in Valbiotis SAS's long position.
The idea behind Groupimo SA and Valbiotis 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like