Correlation Between Compagnie Industrielle and Sogeclair

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

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

Diversification Opportunities for Compagnie Industrielle and Sogeclair

0.81

Correlation Coefficient

Compagnie Industrielle  Sogeclair

Very poor diversification

The 3 months correlation between Compagnie and Sogeclair is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Industrielle et and Sogeclair SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogeclair SA and Compagnie Industrielle 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 Compagnie Industrielle et are associated (or correlated) with Sogeclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogeclair SA has no effect on the direction of Compagnie Industrielle i.e., Compagnie Industrielle and Sogeclair go up and down completely randomly.

Pair Corralation between Compagnie Industrielle and Sogeclair

Assuming the 90 days trading horizon Compagnie Industrielle is expected to generate 1.09 times less return on investment than Sogeclair. In addition to that, Compagnie Industrielle is 2.46 times more volatile than Sogeclair SA. It trades about 0.09 of its total potential returns per unit of risk. Sogeclair SA is currently generating about 0.23 per unit of volatility. If you would invest  1,997  in Sogeclair SA on April 24, 2025 and sell it today you would earn a total of  863.00  from holding Sogeclair SA or generate 43.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Compagnie Industrielle et  vs.  Sogeclair SA

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.

Sogeclair SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sogeclair SA are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Sogeclair reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Compagnie Industrielle and Sogeclair

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

The idea behind Compagnie Industrielle et and Sogeclair 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.