Correlation Between Capgemini and Proactis

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

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

Diversification Opportunities for Capgemini and Proactis

-0.72

Correlation Coefficient

Capgemini  Proactis

Pay attention - limited upside

The 3 months correlation between Capgemini and Proactis is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE and Proactis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proactis SA and Capgemini 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 Capgemini SE are associated (or correlated) with Proactis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proactis SA has no effect on the direction of Capgemini i.e., Capgemini and Proactis go up and down completely randomly.

Pair Corralation between Capgemini and Proactis

Assuming the 90 days trading horizon Capgemini SE is expected to generate 0.36 times more return on investment than Proactis. However, Capgemini SE is 2.75 times less risky than Proactis. It trades about 0.05 of its potential returns per unit of risk. Proactis SA is currently generating about 0.01 per unit of risk. If you would invest  12,903  in Capgemini SE on April 24, 2025 and sell it today you would earn a total of  607.00  from holding Capgemini SE or generate 4.7% return on investment over 90 days.

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

Capgemini SE  vs.  Proactis SA

Capgemini SE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Capgemini SE are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Capgemini is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Proactis SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Proactis SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Proactis 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 Capgemini and Proactis

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

The idea behind Capgemini SE and Proactis 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.