Correlation Between Compagnie and Groupe Partouche

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

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

Diversification Opportunities for Compagnie and Groupe Partouche

0.68

Correlation Coefficient

Compagnie  Groupe Partouche

Poor diversification

The 3 months correlation between Compagnie and Groupe is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie de lOdet and Groupe Partouche SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Partouche and Compagnie 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 de lOdet are associated (or correlated) with Groupe Partouche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Partouche has no effect on the direction of Compagnie i.e., Compagnie and Groupe Partouche go up and down completely randomly.

Pair Corralation between Compagnie and Groupe Partouche

Assuming the 90 days trading horizon Compagnie de lOdet is expected to generate 0.71 times more return on investment than Groupe Partouche. However, Compagnie de lOdet is 1.41 times less risky than Groupe Partouche. It trades about 0.18 of its potential returns per unit of risk. Groupe Partouche SA is currently generating about 0.12 per unit of risk. If you would invest  132,606  in Compagnie de lOdet on April 23, 2025 and sell it today you would earn a total of  14,994  from holding Compagnie de lOdet or generate 11.31% return on investment over 90 days.

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

Compagnie de lOdet  vs.  Groupe Partouche SA

Compagnie de lOdet

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie de lOdet are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Compagnie may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Groupe Partouche

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Partouche SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Groupe Partouche may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Compagnie and Groupe Partouche

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

The idea behind Compagnie de lOdet and Groupe Partouche 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.