Correlation Between Groupe LDLC and Mastrad

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

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

Diversification Opportunities for Groupe LDLC and Mastrad

0.0

Correlation Coefficient

Groupe LDLC  Mastrad

Pay attention - limited upside

The 3 months correlation between Groupe and Mastrad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Groupe LDLC SA and Mastrad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastrad and Groupe LDLC 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 LDLC 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 LDLC i.e., Groupe LDLC and Mastrad go up and down completely randomly.

Pair Corralation between Groupe LDLC and Mastrad

If you would invest  0.00  in Groupe LDLC SA on April 21, 2025 and sell it today you would earn a total of  0.00  from holding Groupe LDLC SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Groupe LDLC SA  vs.  Mastrad

Groupe LDLC SA

Risk-Adjusted Performance

Modest

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

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 LDLC and Mastrad

The main advantage of trading using opposite Groupe LDLC and Mastrad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe LDLC 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 LDLC 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 Transaction History module to view history of all your transactions and understand their impact on performance.