Correlation Between Aubay Socit and Thermador Groupe
Can any of the company-specific risk be diversified away by investing in both Aubay Socit and Thermador 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 Aubay Socit and Thermador Groupe 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 Thermador Groupe SA, you can compare the effects of market volatilities on Aubay Socit and Thermador 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 Aubay Socit with a short position of Thermador Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aubay Socit and Thermador Groupe.
Diversification Opportunities for Aubay Socit and Thermador Groupe
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aubay and Thermador is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aubay Socit Anonyme and Thermador Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermador Groupe 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 Thermador Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermador Groupe has no effect on the direction of Aubay Socit i.e., Aubay Socit and Thermador Groupe go up and down completely randomly.
Pair Corralation between Aubay Socit and Thermador Groupe
Assuming the 90 days trading horizon Aubay Socit Anonyme is expected to generate 0.71 times more return on investment than Thermador Groupe. However, Aubay Socit Anonyme is 1.41 times less risky than Thermador Groupe. It trades about 0.14 of its potential returns per unit of risk. Thermador Groupe SA is currently generating about -0.08 per unit of risk. If you would invest 4,313 in Aubay Socit Anonyme on August 24, 2024 and sell it today you would earn a total of 177.00 from holding Aubay Socit Anonyme or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aubay Socit Anonyme vs. Thermador Groupe SA
Performance |
| Timeline |
| Aubay Socit Anonyme |
| Thermador Groupe |
Aubay Socit and Thermador Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aubay Socit and Thermador Groupe
The main advantage of trading using opposite Aubay Socit and Thermador Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aubay Socit position performs unexpectedly, Thermador 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 Thermador Groupe will offset losses from the drop in Thermador Groupe's long position.| Aubay Socit vs. Neurones | Aubay Socit vs. Infotel SA | Aubay Socit vs. Alten SA | Aubay Socit vs. Manitou BF SA |
| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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