Correlation Between Publicis Groupe and Ströer SE

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

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

Diversification Opportunities for Publicis Groupe and Ströer SE

0.29

Correlation Coefficient

Publicis Groupe  Ströer SE

Modest diversification

The 3 months correlation between Publicis and Ströer is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Publicis Groupe SA and Strer SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ströer SE and Publicis Groupe 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 Publicis Groupe SA are associated (or correlated) with Ströer SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ströer SE has no effect on the direction of Publicis Groupe i.e., Publicis Groupe and Ströer SE go up and down completely randomly.

Pair Corralation between Publicis Groupe and Ströer SE

Assuming the 90 days horizon Publicis Groupe SA is not expected to generate positive returns. However, Publicis Groupe SA is 1.06 times less risky than Ströer SE. It waists most of its returns potential to compensate for thr risk taken. Ströer SE is generating about -0.02 per unit of risk. If you would invest  8,268  in Publicis Groupe SA on April 24, 2025 and sell it today you would lose (68.00) from holding Publicis Groupe SA or give up 0.82% of portfolio value over 90 days.

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

Publicis Groupe SA  vs.  Strer SE Co

Publicis Groupe SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Publicis Groupe SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Publicis Groupe is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Ströer SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days Strer SE Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ströer SE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Publicis Groupe and Ströer SE

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

The idea behind Publicis Groupe SA and Strer SE Co 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.