Correlation Between Groupe Partouche and IDI SCA

Can any of the company-specific risk be diversified away by investing in both Groupe Partouche and IDI SCA 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 IDI SCA 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 IDI SCA, you can compare the effects of market volatilities on Groupe Partouche and IDI SCA 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 IDI SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Partouche and IDI SCA.

Diversification Opportunities for Groupe Partouche and IDI SCA

0.88

Correlation Coefficient

Groupe Partouche  IDI SCA

Very poor diversification

The 3 months correlation between Groupe and IDI is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and IDI SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDI SCA 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 IDI SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDI SCA has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and IDI SCA go up and down completely randomly.

Pair Corralation between Groupe Partouche and IDI SCA

Assuming the 90 days trading horizon Groupe Partouche is expected to generate 1.27 times less return on investment than IDI SCA. In addition to that, Groupe Partouche is 1.67 times more volatile than IDI SCA. It trades about 0.14 of its total potential returns per unit of risk. IDI SCA is currently generating about 0.29 per unit of volatility. If you would invest  6,828  in IDI SCA on April 22, 2025 and sell it today you would earn a total of  1,072  from holding IDI SCA or generate 15.7% return on investment over 90 days.

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

Groupe Partouche SA  vs.  IDI SCA

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 10 (%) 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.

IDI SCA

Risk-Adjusted Performance

Solid

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

Pair Trading with Groupe Partouche and IDI SCA

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

The idea behind Groupe Partouche SA and IDI SCA 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.