Correlation Between Publicis Groupe and Steel Connect
Can any of the company-specific risk be diversified away by investing in both Publicis Groupe and Steel Connect 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 Steel Connect 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 Steel Connect, you can compare the effects of market volatilities on Publicis Groupe and Steel Connect 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 Steel Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Publicis Groupe and Steel Connect.
Diversification Opportunities for Publicis Groupe and Steel Connect
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Publicis and Steel is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Publicis Groupe SA and Steel Connect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Connect 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 Steel Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Connect has no effect on the direction of Publicis Groupe i.e., Publicis Groupe and Steel Connect go up and down completely randomly.
Pair Corralation between Publicis Groupe and Steel Connect
If you would invest 984.00 in Steel Connect on January 25, 2024 and sell it today you would earn a total of 223.00 from holding Steel Connect or generate 22.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.76% |
Values | Daily Returns |
Publicis Groupe SA vs. Steel Connect
Performance |
Timeline |
Publicis Groupe SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Steel Connect |
Publicis Groupe and Steel Connect Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Publicis Groupe and Steel Connect
The main advantage of trading using opposite Publicis Groupe and Steel Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Publicis Groupe position performs unexpectedly, Steel Connect 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 Steel Connect will offset losses from the drop in Steel Connect's long position.Publicis Groupe vs. SwissCom AG | Publicis Groupe vs. Compagnie de Saint Gobain | Publicis Groupe vs. Vinci SA ADR | Publicis Groupe vs. Compagnie Generale des |
Steel Connect vs. Baosheng Media Group | Steel Connect vs. Impact Fusion International | Steel Connect vs. Mirriad Advertising plc | Steel Connect vs. CyberAgent ADR |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |