Correlation Between Groupe Partouche and Compagnie Des

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

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

Diversification Opportunities for Groupe Partouche and Compagnie Des

0.79

Correlation Coefficient

Groupe Partouche  Compagnie Des

Poor diversification

The 3 months correlation between Groupe and Compagnie is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and Compagnie des Alpes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie des Alpes and Groupe Partouche 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 Partouche SA are associated (or correlated) with Compagnie Des. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie des Alpes has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and Compagnie Des go up and down completely randomly.

Pair Corralation between Groupe Partouche and Compagnie Des

Assuming the 90 days trading horizon Groupe Partouche is expected to generate 2.34 times less return on investment than Compagnie Des. But when comparing it to its historical volatility, Groupe Partouche SA is 1.03 times less risky than Compagnie Des. It trades about 0.12 of its potential returns per unit of risk. Compagnie des Alpes is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  1,610  in Compagnie des Alpes on April 23, 2025 and sell it today you would earn a total of  435.00  from holding Compagnie des Alpes or generate 27.02% return on investment over 90 days.

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

Groupe Partouche SA  vs.  Compagnie des Alpes

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.

Compagnie des Alpes

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie des Alpes are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Compagnie Des sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Groupe Partouche and Compagnie Des

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

The idea behind Groupe Partouche SA and Compagnie des Alpes 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.