Correlation Between Icade SA and Rubis SCA
Can any of the company-specific risk be diversified away by investing in both Icade SA 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 Icade SA and Rubis SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icade SA and Rubis SCA, you can compare the effects of market volatilities on Icade SA 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 Icade SA with a short position of Rubis SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icade SA and Rubis SCA.
Diversification Opportunities for Icade SA and Rubis SCA
Good diversification
The 3 months correlation between Icade and Rubis is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Icade SA and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA and Icade SA 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 Icade SA 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 Icade SA i.e., Icade SA and Rubis SCA go up and down completely randomly.
Pair Corralation between Icade SA and Rubis SCA
Assuming the 90 days trading horizon Icade SA is expected to generate 6.53 times less return on investment than Rubis SCA. In addition to that, Icade SA is 1.48 times more volatile than Rubis SCA. It trades about 0.02 of its total potential returns per unit of risk. Rubis SCA is currently generating about 0.17 per unit of volatility. If you would invest 2,408 in Rubis SCA on November 5, 2024 and sell it today you would earn a total of 112.00 from holding Rubis SCA or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icade SA vs. Rubis SCA
Performance |
| Timeline |
| Icade SA |
| Rubis SCA |
Icade SA and Rubis SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icade SA and Rubis SCA
The main advantage of trading using opposite Icade SA and Rubis SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icade SA 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.The idea behind Icade SA and Rubis SCA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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