Correlation Between GOLDGROUP MINING and Sch Environnement

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

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

Diversification Opportunities for GOLDGROUP MINING and Sch Environnement

0.23

Correlation Coefficient

GOLDGROUP MINING  Sch Environnement

Modest diversification

The 3 months correlation between GOLDGROUP and Sch is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding GOLDGROUP MINING INC and Sch Environnement SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sch Environnement and GOLDGROUP MINING 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 GOLDGROUP MINING INC are associated (or correlated) with Sch Environnement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sch Environnement has no effect on the direction of GOLDGROUP MINING i.e., GOLDGROUP MINING and Sch Environnement go up and down completely randomly.

Pair Corralation between GOLDGROUP MINING and Sch Environnement

Assuming the 90 days trading horizon GOLDGROUP MINING is expected to generate 12.21 times less return on investment than Sch Environnement. In addition to that, GOLDGROUP MINING is 1.29 times more volatile than Sch Environnement SA. It trades about 0.01 of its total potential returns per unit of risk. Sch Environnement SA is currently generating about 0.17 per unit of volatility. If you would invest  7,758  in Sch Environnement SA on April 24, 2025 and sell it today you would earn a total of  2,442  from holding Sch Environnement SA or generate 31.48% return on investment over 90 days.

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

GOLDGROUP MINING INC  vs.  Sch Environnement SA

GOLDGROUP MINING INC

Risk-Adjusted Performance

Very Weak

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

Sch Environnement

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sch Environnement SA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Sch Environnement reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GOLDGROUP MINING and Sch Environnement

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

The idea behind GOLDGROUP MINING INC and Sch Environnement 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.