Correlation Between Paulic Meunerie and Agripower France

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

By analyzing existing cross correlation between Paulic Meunerie Sa and Agripower France Sa, you can compare the effects of market volatilities on Paulic Meunerie and Agripower France 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 Paulic Meunerie with a short position of Agripower France. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paulic Meunerie and Agripower France.

Diversification Opportunities for Paulic Meunerie and Agripower France

-0.31

Correlation Coefficient

Paulic Meunerie  Agripower France

Very good diversification

The 3 months correlation between Paulic and Agripower is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Paulic Meunerie Sa and Agripower France Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agripower France and Paulic Meunerie 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 Paulic Meunerie Sa are associated (or correlated) with Agripower France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agripower France has no effect on the direction of Paulic Meunerie i.e., Paulic Meunerie and Agripower France go up and down completely randomly.

Pair Corralation between Paulic Meunerie and Agripower France

Assuming the 90 days trading horizon Paulic Meunerie Sa is expected to under-perform the Agripower France. But the stock apears to be less risky and, when comparing its historical volatility, Paulic Meunerie Sa is 1.18 times less risky than Agripower France. The stock trades about -0.12 of its potential returns per unit of risk. The Agripower France Sa is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  86.00  in Agripower France Sa on December 30, 2024 and sell it today you would earn a total of  18.00  from holding Agripower France Sa or generate 20.93% return on investment over 90 days.

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

Paulic Meunerie Sa  vs.  Agripower France Sa

Paulic Meunerie Sa

Risk-Adjusted Performance

Very Weak

Over the last 90 days Paulic Meunerie 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.

Agripower France

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agripower France Sa are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Agripower France reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Paulic Meunerie and Agripower France

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

The idea behind Paulic Meunerie Sa and Agripower France 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 Anywhere module to track or share privately all of your investments from the convenience of any device.