Correlation Between Roctool and Grard Perrier

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

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

Diversification Opportunities for Roctool and Grard Perrier

-0.45

Correlation Coefficient

Roctool  Grard Perrier

Very good diversification

The 3 months correlation between Roctool and Grard is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Roctool and Grard Perrier Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grard Perrier Industrie and Roctool 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 Roctool are associated (or correlated) with Grard Perrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grard Perrier Industrie has no effect on the direction of Roctool i.e., Roctool and Grard Perrier go up and down completely randomly.

Pair Corralation between Roctool and Grard Perrier

Assuming the 90 days trading horizon Roctool is expected to under-perform the Grard Perrier. In addition to that, Roctool is 3.41 times more volatile than Grard Perrier Industrie. It trades about -0.06 of its total potential returns per unit of risk. Grard Perrier Industrie is currently generating about 0.1 per unit of volatility. If you would invest  7,544  in Grard Perrier Industrie on April 24, 2025 and sell it today you would earn a total of  856.00  from holding Grard Perrier Industrie or generate 11.35% return on investment over 90 days.

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

Roctool  vs.  Grard Perrier Industrie

Roctool

Risk-Adjusted Performance

Very Weak

Over the last 90 days Roctool has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Grard Perrier Industrie

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Grard Perrier Industrie are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Grard Perrier may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Roctool and Grard Perrier

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

The idea behind Roctool and Grard Perrier Industrie 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.