Correlation Between Aubay Socit and Rubis SCA
Can any of the company-specific risk be diversified away by investing in both Aubay Socit and Rubis SCA 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 Aubay Socit and Rubis SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aubay Socit Anonyme and Rubis SCA, you can compare the effects of market volatilities on Aubay Socit and Rubis SCA 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 Aubay Socit with a short position of Rubis SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aubay Socit and Rubis SCA.
Diversification Opportunities for Aubay Socit and Rubis SCA
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aubay and Rubis is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aubay Socit Anonyme and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA and Aubay Socit 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 Aubay Socit Anonyme are associated (or correlated) with Rubis SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis SCA has no effect on the direction of Aubay Socit i.e., Aubay Socit and Rubis SCA go up and down completely randomly.
Pair Corralation between Aubay Socit and Rubis SCA
Assuming the 90 days trading horizon Aubay Socit is expected to generate 1.22 times less return on investment than Rubis SCA. But when comparing it to its historical volatility, Aubay Socit Anonyme is 1.08 times less risky than Rubis SCA. It trades about 0.01 of its potential returns per unit of risk. Rubis SCA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,236 in Rubis SCA on August 31, 2024 and sell it today you would earn a total of 36.00 from holding Rubis SCA or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Aubay Socit Anonyme vs. Rubis SCA
Performance |
| Timeline |
| Aubay Socit Anonyme |
| Rubis SCA |
Aubay Socit and Rubis SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aubay Socit and Rubis SCA
The main advantage of trading using opposite Aubay Socit and Rubis SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aubay Socit position performs unexpectedly, Rubis SCA 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 Rubis SCA will offset losses from the drop in Rubis SCA's long position.| Aubay Socit vs. Neurones | Aubay Socit vs. Infotel SA | Aubay Socit vs. Alten SA | Aubay Socit vs. Manitou BF SA |
| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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