Correlation Between Roche Bobois and Maat Pharma
Can any of the company-specific risk be diversified away by investing in both Roche Bobois and Maat Pharma 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 Roche Bobois and Maat Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roche Bobois and Maat Pharma SA, you can compare the effects of market volatilities on Roche Bobois and Maat Pharma 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 Roche Bobois with a short position of Maat Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roche Bobois and Maat Pharma.
Diversification Opportunities for Roche Bobois and Maat Pharma
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Roche and Maat is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Roche Bobois and Maat Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maat Pharma SA and Roche Bobois 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 Roche Bobois are associated (or correlated) with Maat Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maat Pharma SA has no effect on the direction of Roche Bobois i.e., Roche Bobois and Maat Pharma go up and down completely randomly.
Pair Corralation between Roche Bobois and Maat Pharma
Assuming the 90 days trading horizon Roche Bobois is expected to under-perform the Maat Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Roche Bobois is 1.74 times less risky than Maat Pharma. The stock trades about -0.33 of its potential returns per unit of risk. The Maat Pharma SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. 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 |
Roche Bobois vs. Maat Pharma SA
Performance |
| Timeline |
| Roche Bobois |
| Maat Pharma SA |
Roche Bobois and Maat Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roche Bobois and Maat Pharma
The main advantage of trading using opposite Roche Bobois and Maat Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roche Bobois position performs unexpectedly, Maat Pharma 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 Maat Pharma will offset losses from the drop in Maat Pharma's long position.| Roche Bobois vs. SA Catana Group | Roche Bobois vs. Verallia | Roche Bobois vs. Thermador Groupe SA | Roche Bobois vs. Maisons du Monde |
| Maat Pharma vs. LVMH Mot Hennessy | Maat Pharma vs. LOreal SA | Maat Pharma vs. Hermes International SCA | Maat Pharma vs. Manitou BF SA |
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.
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