Correlation Between Lhyfe SA and Groupe OKwind

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

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

Diversification Opportunities for Lhyfe SA and Groupe OKwind

-0.06

Correlation Coefficient

Lhyfe SA  Groupe OKwind

Good diversification

The 3 months correlation between Lhyfe and Groupe is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lhyfe SA and Groupe OKwind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe OKwind and Lhyfe 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 Lhyfe SA are associated (or correlated) with Groupe OKwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe OKwind has no effect on the direction of Lhyfe SA i.e., Lhyfe SA and Groupe OKwind go up and down completely randomly.

Pair Corralation between Lhyfe SA and Groupe OKwind

Assuming the 90 days trading horizon Lhyfe SA is expected to under-perform the Groupe OKwind. But the stock apears to be less risky and, when comparing its historical volatility, Lhyfe SA is 2.32 times less risky than Groupe OKwind. The stock trades about -0.04 of its potential returns per unit of risk. The Groupe OKwind is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  199.00  in Groupe OKwind on April 24, 2025 and sell it today you would earn a total of  4.00  from holding Groupe OKwind or generate 2.01% return on investment over 90 days.

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

Lhyfe SA  vs.  Groupe OKwind

Lhyfe SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lhyfe SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Lhyfe SA is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Groupe OKwind

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe OKwind are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Groupe OKwind may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Lhyfe SA and Groupe OKwind

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

The idea behind Lhyfe SA and Groupe OKwind 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.

Check out your portfolio center.

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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.