Correlation Between Groupe Partouche and Selectirente

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

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

Diversification Opportunities for Groupe Partouche and Selectirente

0.35

Correlation Coefficient

Groupe Partouche  Selectirente

Weak diversification

The 3 months correlation between Groupe and Selectirente is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and Selectirente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selectirente and Groupe Partouche 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 Groupe Partouche SA are associated (or correlated) with Selectirente. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selectirente has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and Selectirente go up and down completely randomly.

Pair Corralation between Groupe Partouche and Selectirente

Assuming the 90 days trading horizon Groupe Partouche SA is expected to generate 1.99 times more return on investment than Selectirente. However, Groupe Partouche is 1.99 times more volatile than Selectirente. It trades about 0.0 of its potential returns per unit of risk. Selectirente is currently generating about -0.28 per unit of risk. If you would invest  3,790  in Groupe Partouche SA on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Groupe Partouche SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Groupe Partouche SA  vs.  Selectirente

Groupe Partouche

Risk-Adjusted Performance

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.

Selectirente

Risk-Adjusted Performance

Very Weak

Over the last 90 days Selectirente has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Groupe Partouche and Selectirente

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

The idea behind Groupe Partouche SA and Selectirente 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.