Correlation Between Strer SE and Publicis Groupe

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

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

Diversification Opportunities for Strer SE and Publicis Groupe

-0.45

Correlation Coefficient

Strer SE  Publicis Groupe

Very good diversification

The 3 months correlation between Strer and Publicis is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Strer SE Co and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe SA and Strer SE 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 Strer SE Co are associated (or correlated) with Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of Strer SE i.e., Strer SE and Publicis Groupe go up and down completely randomly.

Pair Corralation between Strer SE and Publicis Groupe

If you would invest  0.00  in Publicis Groupe SA on October 13, 2024 and sell it today you would earn a total of  0.00  from holding Publicis Groupe SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.69%
Values	Daily Returns

Strer SE Co  vs.  Publicis Groupe SA

Strer SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Strer SE Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Strer SE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Publicis Groupe SA

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Publicis Groupe SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Publicis Groupe is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Strer SE and Publicis Groupe

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

The idea behind Strer SE Co and Publicis Groupe 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.