Correlation Between Groupe LDLC and Piscines Desjoyaux

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

Diversification Opportunities for Groupe LDLC and Piscines Desjoyaux

-0.53

Correlation Coefficient

Groupe LDLC  Piscines Desjoyaux

Excellent diversification

The 3 months correlation between Groupe and Piscines is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Groupe LDLC SA and Piscines Desjoyaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piscines Desjoyaux 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 Piscines Desjoyaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piscines Desjoyaux has no effect on the direction of Groupe LDLC i.e., Groupe LDLC and Piscines Desjoyaux go up and down completely randomly.

Pair Corralation between Groupe LDLC and Piscines Desjoyaux

Assuming the 90 days trading horizon Groupe LDLC SA is expected to generate 2.18 times more return on investment than Piscines Desjoyaux. However, Groupe LDLC is 2.18 times more volatile than Piscines Desjoyaux SA. It trades about 0.07 of its potential returns per unit of risk. Piscines Desjoyaux SA is currently generating about 0.13 per unit of risk. If you would invest  674.00  in Groupe LDLC SA on April 21, 2025 and sell it today you would earn a total of  82.00  from holding Groupe LDLC SA or generate 12.17% return on investment over 90 days.

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

Groupe LDLC SA  vs.  Piscines Desjoyaux SA

Groupe LDLC SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe LDLC SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Groupe LDLC reported solid returns over the last few months and may actually be approaching a breakup point.

Piscines Desjoyaux

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Piscines Desjoyaux SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Piscines Desjoyaux may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Groupe LDLC and Piscines Desjoyaux

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

The idea behind Groupe LDLC SA and Piscines Desjoyaux 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 CEOs Directory module to screen CEOs from public companies around the world.