Correlation Between Groupe Guillin and Mastrad

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

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

Diversification Opportunities for Groupe Guillin and Mastrad

-0.28

Correlation Coefficient

Groupe Guillin  Mastrad

Very good diversification

The 3 months correlation between Groupe and Mastrad is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Mastrad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastrad and Groupe Guillin 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 Groupe Guillin SA are associated (or correlated) with Mastrad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mastrad has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Mastrad go up and down completely randomly.

Pair Corralation between Groupe Guillin and Mastrad

Assuming the 90 days trading horizon Groupe Guillin SA is expected to generate 0.16 times more return on investment than Mastrad. However, Groupe Guillin SA is 6.24 times less risky than Mastrad. It trades about 0.19 of its potential returns per unit of risk. Mastrad is currently generating about 0.0 per unit of risk. If you would invest  2,558  in Groupe Guillin SA on April 21, 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Groupe Guillin SA  vs.  Mastrad

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.

Mastrad

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mastrad has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Mastrad is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Groupe Guillin and Mastrad

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

The idea behind Groupe Guillin SA and Mastrad 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.