Correlation Between Sogeclair and Maison Antoine

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

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

Diversification Opportunities for Sogeclair and Maison Antoine

0.44

Correlation Coefficient

Sogeclair  Maison Antoine

Very weak diversification

The 3 months correlation between Sogeclair and Maison is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sogeclair SA and Maison Antoine Baud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maison Antoine Baud and Sogeclair 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 Sogeclair SA are associated (or correlated) with Maison Antoine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maison Antoine Baud has no effect on the direction of Sogeclair i.e., Sogeclair and Maison Antoine go up and down completely randomly.

Pair Corralation between Sogeclair and Maison Antoine

Assuming the 90 days trading horizon Sogeclair is expected to generate 1.9 times less return on investment than Maison Antoine. But when comparing it to its historical volatility, Sogeclair SA is 1.32 times less risky than Maison Antoine. It trades about 0.14 of its potential returns per unit of risk. Maison Antoine Baud is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  20,200  in Maison Antoine Baud on December 4, 2024 and sell it today you would earn a total of  7,800  from holding Maison Antoine Baud or generate 38.61% return on investment over 90 days.

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

Sogeclair SA  vs.  Maison Antoine Baud

Sogeclair SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sogeclair SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Sogeclair reported solid returns over the last few months and may actually be approaching a breakup point.

Maison Antoine Baud

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Maison Antoine Baud are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Maison Antoine reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sogeclair and Maison Antoine

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

The idea behind Sogeclair SA and Maison Antoine Baud 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..