Correlation Between Maat Pharma and Roche Bobois
Can any of the company-specific risk be diversified away by investing in both Maat Pharma and Roche Bobois 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 Maat Pharma and Roche Bobois into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maat Pharma SA and Roche Bobois, you can compare the effects of market volatilities on Maat Pharma and Roche Bobois 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 Maat Pharma with a short position of Roche Bobois. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maat Pharma and Roche Bobois.
Diversification Opportunities for Maat Pharma and Roche Bobois
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maat and Roche is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Maat Pharma SA and Roche Bobois in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roche Bobois and Maat Pharma 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 Maat Pharma SA are associated (or correlated) with Roche Bobois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roche Bobois has no effect on the direction of Maat Pharma i.e., Maat Pharma and Roche Bobois go up and down completely randomly.
Pair Corralation between Maat Pharma and Roche Bobois
Assuming the 90 days trading horizon Maat Pharma SA is expected to generate 1.74 times more return on investment than Roche Bobois. However, Maat Pharma is 1.74 times more volatile than Roche Bobois. It trades about 0.07 of its potential returns per unit of risk. Roche Bobois is currently generating about -0.33 per unit of risk. If you would invest 744.00 in Maat Pharma SA on August 28, 2024 and sell it today you would earn a total of 22.00 from holding Maat Pharma SA or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maat Pharma SA vs. Roche Bobois
Performance |
| Timeline |
| Maat Pharma SA |
| Roche Bobois |
Maat Pharma and Roche Bobois Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maat Pharma and Roche Bobois
The main advantage of trading using opposite Maat Pharma and Roche Bobois positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maat Pharma position performs unexpectedly, Roche Bobois 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 Roche Bobois will offset losses from the drop in Roche Bobois' long position.| Maat Pharma vs. LVMH Mot Hennessy | Maat Pharma vs. LOreal SA | Maat Pharma vs. Hermes International SCA | Maat Pharma vs. Manitou BF SA |
| Roche Bobois vs. SA Catana Group | Roche Bobois vs. Verallia | Roche Bobois vs. Thermador Groupe SA | Roche Bobois vs. Maisons du Monde |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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