Correlation Between Groupe Guillin and Infotel SA

Can any of the company-specific risk be diversified away by investing in both Groupe Guillin and Infotel SA 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 Infotel SA 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 Infotel SA, you can compare the effects of market volatilities on Groupe Guillin and Infotel SA 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 Infotel SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Guillin and Infotel SA.

Diversification Opportunities for Groupe Guillin and Infotel SA

-0.65

Correlation Coefficient

Groupe Guillin  Infotel SA

Excellent diversification

The 3 months correlation between Groupe and Infotel is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Guillin SA and Infotel SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infotel SA 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 Infotel SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infotel SA has no effect on the direction of Groupe Guillin i.e., Groupe Guillin and Infotel SA go up and down completely randomly.

Pair Corralation between Groupe Guillin and Infotel SA

Assuming the 90 days trading horizon Groupe Guillin SA is expected to generate 0.93 times more return on investment than Infotel SA. However, Groupe Guillin SA is 1.07 times less risky than Infotel SA. It trades about 0.23 of its potential returns per unit of risk. Infotel SA is currently generating about -0.1 per unit of risk. If you would invest  2,524  in Groupe Guillin SA on April 25, 2025 and sell it today you would earn a total of  436.00  from holding Groupe Guillin SA or generate 17.27% return on investment over 90 days.

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

Groupe Guillin SA  vs.  Infotel SA

Groupe Guillin SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Guillin SA are ranked lower than 18 (%) 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.

Infotel SA

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Groupe Guillin and Infotel SA

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

The idea behind Groupe Guillin SA and Infotel 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.