Correlation Between Groupe CRIT and Neurones

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

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

Diversification Opportunities for Groupe CRIT and Neurones

0.12

Correlation Coefficient

Groupe CRIT  Neurones

Average diversification

The 3 months correlation between Groupe and Neurones is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Groupe CRIT SA and Neurones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neurones and Groupe CRIT 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 CRIT SA are associated (or correlated) with Neurones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neurones has no effect on the direction of Groupe CRIT i.e., Groupe CRIT and Neurones go up and down completely randomly.

Pair Corralation between Groupe CRIT and Neurones

Assuming the 90 days trading horizon Groupe CRIT SA is expected to generate 0.78 times more return on investment than Neurones. However, Groupe CRIT SA is 1.28 times less risky than Neurones. It trades about 0.12 of its potential returns per unit of risk. Neurones is currently generating about 0.02 per unit of risk. If you would invest  5,973  in Groupe CRIT SA on April 23, 2025 and sell it today you would earn a total of  467.00  from holding Groupe CRIT SA or generate 7.82% return on investment over 90 days.

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

Groupe CRIT SA  vs.  Neurones

Groupe CRIT SA

Risk-Adjusted Performance

OK

Over the last 90 days Groupe CRIT SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Groupe CRIT may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Neurones

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Neurones are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Neurones is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Groupe CRIT and Neurones

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

The idea behind Groupe CRIT SA and Neurones 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.