Correlation Between Immobiliere Dassault and Groupe Partouche

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

Diversification Opportunities for Immobiliere Dassault and Groupe Partouche

ImmobiliereGroupeDiversified AwayImmobiliereGroupeDiversified Away100%
-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between Immobiliere and Groupe is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Immobiliere Dassault SA and Groupe Partouche SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Partouche and Immobiliere Dassault 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 Immobiliere Dassault SA are associated (or correlated) with Groupe Partouche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Partouche has no effect on the direction of Immobiliere Dassault i.e., Immobiliere Dassault and Groupe Partouche go up and down completely randomly.

Pair Corralation between Immobiliere Dassault and Groupe Partouche

Assuming the 90 days trading horizon Immobiliere Dassault SA is expected to generate 0.86 times more return on investment than Groupe Partouche. However, Immobiliere Dassault SA is 1.16 times less risky than Groupe Partouche. It trades about 0.01 of its potential returns per unit of risk. Groupe Partouche SA is currently generating about -0.04 per unit of risk. If you would invest  5,160  in Immobiliere Dassault SA on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Immobiliere Dassault SA or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Immobiliere Dassault SA  vs.  Groupe Partouche SA

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 0510
JavaScript chart by amCharts 3.21.15IMDA PAR
       Timeline  
Immobiliere Dassault 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Immobiliere Dassault SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Immobiliere Dassault is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec5051525354
Groupe Partouche 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Groupe Partouche SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Groupe Partouche is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec38394041424344

Immobiliere Dassault and Groupe Partouche Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.35-3.26-2.17-1.070.01.092.183.284.37 0.050.100.150.20
JavaScript chart by amCharts 3.21.15IMDA PAR
       Returns  

Pair Trading with Immobiliere Dassault and Groupe Partouche

The main advantage of trading using opposite Immobiliere Dassault and Groupe Partouche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immobiliere Dassault position performs unexpectedly, Groupe Partouche 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 Partouche will offset losses from the drop in Groupe Partouche's long position.
The idea behind Immobiliere Dassault SA and Groupe Partouche 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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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