Correlation Between EBRO FOODS and Rubis SCA
Can any of the company-specific risk be diversified away by investing in both EBRO FOODS 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 EBRO FOODS and Rubis SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EBRO FOODS and Rubis SCA, you can compare the effects of market volatilities on EBRO FOODS 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 EBRO FOODS with a short position of Rubis SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBRO FOODS and Rubis SCA.
Diversification Opportunities for EBRO FOODS and Rubis SCA
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between EBRO and Rubis is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding EBRO FOODS and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA and EBRO FOODS 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 EBRO FOODS 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 EBRO FOODS i.e., EBRO FOODS and Rubis SCA go up and down completely randomly.
Pair Corralation between EBRO FOODS and Rubis SCA
Assuming the 90 days trading horizon EBRO FOODS is expected to generate 1.78 times less return on investment than Rubis SCA. But when comparing it to its historical volatility, EBRO FOODS is 1.3 times less risky than Rubis SCA. It trades about 0.03 of its potential returns per unit of risk. Rubis SCA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,990 in Rubis SCA on September 23, 2024 and sell it today you would earn a total of 290.00 from holding Rubis SCA or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EBRO FOODS vs. Rubis SCA
Performance |
| Timeline |
| EBRO FOODS |
| Rubis SCA |
EBRO FOODS and Rubis SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBRO FOODS and Rubis SCA
The main advantage of trading using opposite EBRO FOODS and Rubis SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBRO FOODS 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.| EBRO FOODS vs. LGI Homes | EBRO FOODS vs. Wayside Technology Group | EBRO FOODS vs. DFS Furniture PLC | EBRO FOODS vs. HomeToGo SE |
| Rubis SCA vs. National Beverage Corp | Rubis SCA vs. Ebro Foods SA | Rubis SCA vs. THAI BEVERAGE | Rubis SCA vs. EBRO FOODS |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |