Correlation Between Frasers Centrepoint and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both Frasers Centrepoint and Publicis Groupe 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 Frasers Centrepoint and Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frasers Centrepoint Trust and Publicis Groupe SA, you can compare the effects of market volatilities on Frasers Centrepoint and Publicis Groupe 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 Frasers Centrepoint with a short position of Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frasers Centrepoint and Publicis Groupe.
Diversification Opportunities for Frasers Centrepoint and Publicis Groupe
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Frasers and Publicis is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Frasers Centrepoint Trust and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe SA and Frasers Centrepoint 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 Frasers Centrepoint Trust are associated (or correlated) with Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of Frasers Centrepoint i.e., Frasers Centrepoint and Publicis Groupe go up and down completely randomly.
Pair Corralation between Frasers Centrepoint and Publicis Groupe
If you would invest 2,123 in Publicis Groupe SA on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Publicis Groupe SA or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.76% |
Values | Daily Returns |
Frasers Centrepoint Trust vs. Publicis Groupe SA
Performance |
Timeline |
Frasers Centrepoint Trust |
Publicis Groupe SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Frasers Centrepoint and Publicis Groupe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Frasers Centrepoint and Publicis Groupe
The main advantage of trading using opposite Frasers Centrepoint and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frasers Centrepoint position performs unexpectedly, Publicis Groupe 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 Publicis Groupe will offset losses from the drop in Publicis Groupe's long position.Frasers Centrepoint vs. Cedar Realty Trust | Frasers Centrepoint vs. Wheeler Real Estate | Frasers Centrepoint vs. Macerich Company | Frasers Centrepoint vs. Simon Property Group |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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