Correlation Between Robertet and Oeneo SA
Can any of the company-specific risk be diversified away by investing in both Robertet and Oeneo 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 Oeneo 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 Oeneo SA, you can compare the effects of market volatilities on Robertet and Oeneo 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 Oeneo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robertet and Oeneo SA.
Diversification Opportunities for Robertet and Oeneo SA
Modest diversification
The 3 months correlation between Robertet and Oeneo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Robertet SA and Oeneo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oeneo 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 Oeneo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oeneo SA has no effect on the direction of Robertet i.e., Robertet and Oeneo SA go up and down completely randomly.
Pair Corralation between Robertet and Oeneo SA
Assuming the 90 days trading horizon Robertet SA is expected to generate 0.82 times more return on investment than Oeneo SA. However, Robertet SA is 1.21 times less risky than Oeneo SA. It trades about 0.06 of its potential returns per unit of risk. Oeneo SA is currently generating about -0.07 per unit of risk. If you would invest 75,713 in Robertet SA on August 26, 2024 and sell it today you would earn a total of 13,687 from holding Robertet SA or generate 18.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robertet SA vs. Oeneo SA
Performance |
| Timeline |
| Robertet SA |
| Oeneo SA |
Robertet and Oeneo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robertet and Oeneo SA
The main advantage of trading using opposite Robertet and Oeneo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robertet position performs unexpectedly, Oeneo 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 Oeneo SA will offset losses from the drop in Oeneo SA's long position.| Robertet vs. Grard Perrier Industrie | Robertet vs. Samse SA | Robertet vs. Manitou BF SA | Robertet vs. Ossiam Minimum Variance |
| Oeneo SA vs. Robertet SA | Oeneo SA vs. Virbac SA | Oeneo SA vs. Tonnellerie Francois Freres | Oeneo SA vs. Thermador Groupe 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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