Correlation Between Samse SA and Grard Perrier

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

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

Diversification Opportunities for Samse SA and Grard Perrier

0.5

Correlation Coefficient

Samse SA  Grard Perrier

Very weak diversification

The 3 months correlation between Samse and Grard is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Samse SA and Grard Perrier Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grard Perrier Industrie and Samse SA 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 Samse SA are associated (or correlated) with Grard Perrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grard Perrier Industrie has no effect on the direction of Samse SA i.e., Samse SA and Grard Perrier go up and down completely randomly.

Pair Corralation between Samse SA and Grard Perrier

Assuming the 90 days trading horizon Samse SA is expected to generate 1.05 times more return on investment than Grard Perrier. However, Samse SA is 1.05 times more volatile than Grard Perrier Industrie. It trades about 0.03 of its potential returns per unit of risk. Grard Perrier Industrie is currently generating about -0.1 per unit of risk. If you would invest  14,350  in Samse SA on December 30, 2024 and sell it today you would earn a total of  250.00  from holding Samse SA or generate 1.74% return on investment over 90 days.

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

Samse SA  vs.  Grard Perrier Industrie

Samse SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Samse SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Samse SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Grard Perrier Industrie

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grard Perrier Industrie has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Samse SA and Grard Perrier

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

The idea behind Samse SA and Grard Perrier Industrie 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.