Correlation Between Groupe Pizzorno and Soditech

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

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

Diversification Opportunities for Groupe Pizzorno and Soditech

-0.28

Correlation Coefficient

Groupe Pizzorno  Soditech

Very good diversification

The 3 months correlation between Groupe and Soditech is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Pizzorno Environnement and Soditech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soditech SA and Groupe Pizzorno 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 Pizzorno Environnement are associated (or correlated) with Soditech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soditech SA has no effect on the direction of Groupe Pizzorno i.e., Groupe Pizzorno and Soditech go up and down completely randomly.

Pair Corralation between Groupe Pizzorno and Soditech

Assuming the 90 days trading horizon Groupe Pizzorno is expected to generate 4.93 times less return on investment than Soditech. But when comparing it to its historical volatility, Groupe Pizzorno Environnement is 2.33 times less risky than Soditech. It trades about 0.06 of its potential returns per unit of risk. Soditech SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  150.00  in Soditech SA on April 23, 2025 and sell it today you would earn a total of  50.00  from holding Soditech SA or generate 33.33% return on investment over 90 days.

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

Groupe Pizzorno Environnement  vs.  Soditech SA

Groupe Pizzorno Envi

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Pizzorno Environnement are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Groupe Pizzorno may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Soditech SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Soditech SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Soditech sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Groupe Pizzorno and Soditech

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

The idea behind Groupe Pizzorno Environnement and Soditech 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.