Correlation Between Robertet and Sumo Resources
Can any of the company-specific risk be diversified away by investing in both Robertet and Sumo Resources 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 Sumo Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robertet SA and Sumo Resources PLC, you can compare the effects of market volatilities on Robertet and Sumo Resources 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 Sumo Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robertet and Sumo Resources.
Diversification Opportunities for Robertet and Sumo Resources
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Robertet and Sumo is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Robertet SA and Sumo Resources PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumo Resources PLC 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 Sumo Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumo Resources PLC has no effect on the direction of Robertet i.e., Robertet and Sumo Resources go up and down completely randomly.
Pair Corralation between Robertet and Sumo Resources
If you would invest 0.45 in Sumo Resources PLC on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Sumo Resources PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Robertet SA vs. Sumo Resources PLC
Performance |
| Timeline |
| Robertet SA |
| Sumo Resources PLC |
Robertet and Sumo Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robertet and Sumo Resources
The main advantage of trading using opposite Robertet and Sumo Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robertet position performs unexpectedly, Sumo Resources 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 Sumo Resources will offset losses from the drop in Sumo Resources' long position.| Robertet vs. Tonnellerie Francois Freres | Robertet vs. Thermador Groupe SA | Robertet vs. Neurones | Robertet vs. Sartorius Stedim Biotech |
| Sumo Resources vs. TotalEnergies EP Gabon | Sumo Resources vs. Robertet SA | Sumo Resources vs. EPC Groupe | Sumo Resources 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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