Correlation Between Spineguard and Assystem

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

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

Diversification Opportunities for Spineguard and Assystem

-0.31

Correlation Coefficient

Spineguard  Assystem

Very good diversification

The 3 months correlation between Spineguard and Assystem is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Spineguard and Assystem SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assystem SA and Spineguard 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 Spineguard are associated (or correlated) with Assystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assystem SA has no effect on the direction of Spineguard i.e., Spineguard and Assystem go up and down completely randomly.

Pair Corralation between Spineguard and Assystem

Assuming the 90 days trading horizon Spineguard is expected to under-perform the Assystem. In addition to that, Spineguard is 3.63 times more volatile than Assystem SA. It trades about -0.02 of its total potential returns per unit of risk. Assystem SA is currently generating about 0.3 per unit of volatility. If you would invest  3,266  in Assystem SA on April 22, 2025 and sell it today you would earn a total of  1,124  from holding Assystem SA or generate 34.42% return on investment over 90 days.

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

Spineguard  vs.  Assystem SA

Spineguard

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spineguard has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Assystem SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Assystem SA are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Assystem sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Spineguard and Assystem

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

The idea behind Spineguard and Assystem 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.