Correlation Between Robertet and Grard Perrier

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

By analyzing existing cross correlation between Robertet SA and Grard Perrier Industrie, you can compare the effects of market volatilities on Robertet and Grard Perrier 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 Robertet with a short position of Grard Perrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robertet and Grard Perrier.

Diversification Opportunities for Robertet and Grard Perrier

-0.16

Correlation Coefficient

Robertet  Grard Perrier

Good diversification

The 3 months correlation between Robertet and Grard is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Robertet SA and Grard Perrier Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grard Perrier Industrie and Robertet 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 Robertet SA are associated (or correlated) with Grard Perrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grard Perrier Industrie has no effect on the direction of Robertet i.e., Robertet and Grard Perrier go up and down completely randomly.

Pair Corralation between Robertet and Grard Perrier

Assuming the 90 days trading horizon Robertet SA is expected to under-perform the Grard Perrier. But the stock apears to be less risky and, when comparing its historical volatility, Robertet SA is 1.92 times less risky than Grard Perrier. The stock trades about -0.01 of its potential returns per unit of risk. The Grard Perrier Industrie is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  7,660  in Grard Perrier Industrie on April 25, 2025 and sell it today you would earn a total of  740.00  from holding Grard Perrier Industrie or generate 9.66% return on investment over 90 days.

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

Robertet SA  vs.  Grard Perrier Industrie

Robertet SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robertet SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Robertet is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Grard Perrier Industrie

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Grard Perrier Industrie are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Grard Perrier may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Robertet and Grard Perrier

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

The idea behind Robertet SA and Grard Perrier Industrie 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.