Correlation Between Baikowski SASU and Groupe Sfpi

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Can any of the company-specific risk be diversified away by investing in both Baikowski SASU and Groupe Sfpi 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 Baikowski SASU and Groupe Sfpi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baikowski SASU and Groupe Sfpi, you can compare the effects of market volatilities on Baikowski SASU and Groupe Sfpi 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 Baikowski SASU with a short position of Groupe Sfpi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baikowski SASU and Groupe Sfpi.

Diversification Opportunities for Baikowski SASU and Groupe Sfpi

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Baikowski and Groupe is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Baikowski SASU and Groupe Sfpi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Sfpi and Baikowski SASU 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 Baikowski SASU are associated (or correlated) with Groupe Sfpi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Sfpi has no effect on the direction of Baikowski SASU i.e., Baikowski SASU and Groupe Sfpi go up and down completely randomly.

Pair Corralation between Baikowski SASU and Groupe Sfpi

Assuming the 90 days trading horizon Baikowski SASU is expected to generate 2.05 times more return on investment than Groupe Sfpi. However, Baikowski SASU is 2.05 times more volatile than Groupe Sfpi. It trades about 0.16 of its potential returns per unit of risk. Groupe Sfpi is currently generating about 0.19 per unit of risk. If you would invest  1,499  in Baikowski SASU on April 23, 2025 and sell it today you would earn a total of  561.00  from holding Baikowski SASU or generate 37.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy98.44%
ValuesDaily Returns

Baikowski SASU  vs.  Groupe Sfpi

 Performance 
       Timeline  
Baikowski SASU 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Baikowski SASU are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Baikowski SASU reported solid returns over the last few months and may actually be approaching a breakup point.
Groupe Sfpi 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Sfpi are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Groupe Sfpi sustained solid returns over the last few months and may actually be approaching a breakup point.

Baikowski SASU and Groupe Sfpi Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Baikowski SASU and Groupe Sfpi

The main advantage of trading using opposite Baikowski SASU and Groupe Sfpi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baikowski SASU position performs unexpectedly, Groupe Sfpi 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 Groupe Sfpi will offset losses from the drop in Groupe Sfpi's long position.
The idea behind Baikowski SASU and Groupe Sfpi 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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