Correlation Between Assystem and Compagnie Industrielle

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

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

Diversification Opportunities for Assystem and Compagnie Industrielle

0.48

Correlation Coefficient

Assystem  Compagnie Industrielle

Very weak diversification

The 3 months correlation between Assystem and Compagnie is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Assystem SA and Compagnie Industrielle et in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Industrielle and Assystem 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 Assystem SA are associated (or correlated) with Compagnie Industrielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Industrielle has no effect on the direction of Assystem i.e., Assystem and Compagnie Industrielle go up and down completely randomly.

Pair Corralation between Assystem and Compagnie Industrielle

Assuming the 90 days trading horizon Assystem is expected to generate 1.27 times less return on investment than Compagnie Industrielle. But when comparing it to its historical volatility, Assystem SA is 4.1 times less risky than Compagnie Industrielle. It trades about 0.28 of its potential returns per unit of risk. Compagnie Industrielle et is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  5,700  in Compagnie Industrielle et on April 24, 2025 and sell it today you would earn a total of  1,400  from holding Compagnie Industrielle et or generate 24.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Assystem SA  vs.  Compagnie Industrielle et

Assystem SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Assystem SA are ranked lower than 21 (%) 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.

Compagnie Industrielle

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie Industrielle et are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Compagnie Industrielle sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Assystem and Compagnie Industrielle

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

The idea behind Assystem SA and Compagnie Industrielle et 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.