Correlation Between Gecina SA and Stradim Espace

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

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

Diversification Opportunities for Gecina SA and Stradim Espace

0.42

Correlation Coefficient

Gecina SA  Stradim Espace

Very weak diversification

The 3 months correlation between Gecina and Stradim is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gecina SA and Stradim Espace Finances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stradim Espace Finances and Gecina SA 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 Gecina SA are associated (or correlated) with Stradim Espace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stradim Espace Finances has no effect on the direction of Gecina SA i.e., Gecina SA and Stradim Espace go up and down completely randomly.

Pair Corralation between Gecina SA and Stradim Espace

Assuming the 90 days trading horizon Gecina SA is expected to generate 25.42 times less return on investment than Stradim Espace. But when comparing it to its historical volatility, Gecina SA is 7.97 times less risky than Stradim Espace. It trades about 0.04 of its potential returns per unit of risk. Stradim Espace Finances is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  430.00  in Stradim Espace Finances on April 25, 2025 and sell it today you would earn a total of  215.00  from holding Stradim Espace Finances or generate 50.0% return on investment over 90 days.

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

Gecina SA  vs.  Stradim Espace Finances

Gecina SA

Risk-Adjusted Performance

Insignificant

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

Stradim Espace Finances

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stradim Espace Finances are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Stradim Espace reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gecina SA and Stradim Espace

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

The idea behind Gecina SA and Stradim Espace Finances 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.