Correlation Between OVH Groupe and Aramis SAS

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

By analyzing existing cross correlation between OVH Groupe SAS and Aramis SAS, you can compare the effects of market volatilities on OVH Groupe and Aramis 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 OVH Groupe with a short position of Aramis SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of OVH Groupe and Aramis SAS.

Diversification Opportunities for OVH Groupe and Aramis SAS

0.0

Correlation Coefficient

OVH Groupe  Aramis SAS

Pay attention - limited upside

The 3 months correlation between OVH and Aramis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OVH Groupe SAS and Aramis SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aramis SAS and OVH Groupe 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 OVH Groupe SAS are associated (or correlated) with Aramis SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aramis SAS has no effect on the direction of OVH Groupe i.e., OVH Groupe and Aramis SAS go up and down completely randomly.

Pair Corralation between OVH Groupe and Aramis SAS

If you would invest  0.00  in Aramis SAS on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Aramis SAS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

OVH Groupe SAS  vs.  Aramis SAS

OVH Groupe SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days OVH Groupe SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Aramis SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aramis SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Aramis SAS is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with OVH Groupe and Aramis SAS

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

The idea behind OVH Groupe SAS and Aramis 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.