Correlation Between Robertet and Elis SA
Can any of the company-specific risk be diversified away by investing in both Robertet and Elis SA 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 Robertet and Elis SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robertet SA and Elis SA, you can compare the effects of market volatilities on Robertet and Elis SA 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 Robertet with a short position of Elis SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robertet and Elis SA.
Diversification Opportunities for Robertet and Elis SA
Very good diversification
The 3 months correlation between Robertet and Elis is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Robertet SA and Elis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elis SA and Robertet 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 Robertet SA are associated (or correlated) with Elis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elis SA has no effect on the direction of Robertet i.e., Robertet and Elis SA go up and down completely randomly.
Pair Corralation between Robertet and Elis SA
Assuming the 90 days trading horizon Robertet is expected to generate 4.48 times less return on investment than Elis SA. But when comparing it to its historical volatility, Robertet SA is 1.38 times less risky than Elis SA. It trades about 0.02 of its potential returns per unit of risk. Elis SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,201 in Elis SA on August 26, 2024 and sell it today you would earn a total of 796.00 from holding Elis SA or generate 66.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robertet SA vs. Elis SA
Performance |
| Timeline |
| Robertet SA |
| Elis SA |
Robertet and Elis SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robertet and Elis SA
The main advantage of trading using opposite Robertet and Elis SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robertet position performs unexpectedly, Elis SA 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 Elis SA will offset losses from the drop in Elis SA's long position.| Robertet vs. Tonnellerie Francois Freres | Robertet vs. Thermador Groupe SA | Robertet vs. Neurones | Robertet vs. Sartorius Stedim Biotech |
| Elis SA vs. Prodways Group SA | Elis SA vs. Claranova SE | Elis SA vs. DBV Technologies SA | Elis SA 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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