Correlation Between Gevelot and Groupe Guillin

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

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

Diversification Opportunities for Gevelot and Groupe Guillin

0.73

Correlation Coefficient

Gevelot  Groupe Guillin

Poor diversification

The 3 months correlation between Gevelot and Groupe is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gevelot and Groupe Guillin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Guillin SA and Gevelot 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 Gevelot are associated (or correlated) with Groupe Guillin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Guillin SA has no effect on the direction of Gevelot i.e., Gevelot and Groupe Guillin go up and down completely randomly.

Pair Corralation between Gevelot and Groupe Guillin

Assuming the 90 days trading horizon Gevelot is expected to generate 2.02 times less return on investment than Groupe Guillin. In addition to that, Gevelot is 1.78 times more volatile than Groupe Guillin SA. It trades about 0.05 of its total potential returns per unit of risk. Groupe Guillin SA is currently generating about 0.19 per unit of volatility. If you would invest  2,558  in Groupe Guillin SA on April 22, 2025 and sell it today you would earn a total of  362.00  from holding Groupe Guillin SA or generate 14.15% return on investment over 90 days.

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

Gevelot  vs.  Groupe Guillin SA

Gevelot

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gevelot are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Gevelot may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Groupe Guillin SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Guillin SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Groupe Guillin reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gevelot and Groupe Guillin

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

The idea behind Gevelot and Groupe Guillin 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.

Check out your portfolio center.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.