Correlation Between Groupe Partouche and Compagnie

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

Diversification Opportunities for Groupe Partouche and Compagnie

0.81

Correlation Coefficient

Groupe Partouche  Compagnie

Very poor diversification

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

Pair Corralation between Groupe Partouche and Compagnie

Assuming the 90 days trading horizon Groupe Partouche is expected to generate 1.61 times less return on investment than Compagnie. But when comparing it to its historical volatility, Groupe Partouche SA is 1.24 times less risky than Compagnie. It trades about 0.14 of its potential returns per unit of risk. Compagnie Du Mont Blanc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  16,600  in Compagnie Du Mont Blanc on April 24, 2025 and sell it today you would earn a total of  3,300  from holding Compagnie Du Mont Blanc or generate 19.88% return on investment over 90 days.

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

Groupe Partouche SA  vs.  Compagnie Du Mont Blanc

Groupe Partouche

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Partouche SA are ranked lower than 11 (%) 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 Du Mont

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie Du Mont Blanc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Compagnie reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Groupe Partouche and Compagnie

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

The idea behind Groupe Partouche SA and Compagnie Du Mont Blanc 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.