Correlation Between Service Team and Compagnie Gnrale

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

By analyzing existing cross correlation between Service Team and Compagnie Gnrale des, you can compare the effects of market volatilities on Service Team and Compagnie Gnrale 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 Service Team with a short position of Compagnie Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Service Team and Compagnie Gnrale.

Diversification Opportunities for Service Team and Compagnie Gnrale

0.0

Correlation Coefficient

Service Team  Compagnie Gnrale

Pay attention - limited upside

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

Pair Corralation between Service Team and Compagnie Gnrale

Given the investment horizon of 90 days Service Team is expected to under-perform the Compagnie Gnrale. In addition to that, Service Team is 2.9 times more volatile than Compagnie Gnrale des. It trades about -0.13 of its total potential returns per unit of risk. Compagnie Gnrale des is currently generating about -0.03 per unit of volatility. If you would invest  3,858  in Compagnie Gnrale des on September 14, 2024 and sell it today you would lose (463.00) from holding Compagnie Gnrale des or give up 12.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Service Team  vs.  Compagnie Gnrale des

Service Team

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Service Team has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Compagnie Gnrale des

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Compagnie Gnrale des has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Service Team and Compagnie Gnrale

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

The idea behind Service Team and Compagnie Gnrale des 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.