Correlation Between Robertet and Unibel SA
Can any of the company-specific risk be diversified away by investing in both Robertet and Unibel 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 Unibel 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 Unibel SA, you can compare the effects of market volatilities on Robertet and Unibel 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 Unibel SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robertet and Unibel SA.
Diversification Opportunities for Robertet and Unibel SA
Pay attention - limited upside
The 3 months correlation between Robertet and Unibel is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Robertet SA and Unibel SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibel 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 Unibel SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibel SA has no effect on the direction of Robertet i.e., Robertet and Unibel SA go up and down completely randomly.
Pair Corralation between Robertet and Unibel SA
Assuming the 90 days trading horizon Robertet SA is expected to under-perform the Unibel SA. In addition to that, Robertet is 1.79 times more volatile than Unibel SA. It trades about -0.03 of its total potential returns per unit of risk. Unibel SA is currently generating about 0.06 per unit of volatility. If you would invest 96,500 in Unibel SA on November 7, 2024 and sell it today you would earn a total of 500.00 from holding Unibel SA or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Robertet SA vs. Unibel SA
Performance |
| Timeline |
| Robertet SA |
| Unibel SA |
Robertet and Unibel SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robertet and Unibel SA
The main advantage of trading using opposite Robertet and Unibel SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robertet position performs unexpectedly, Unibel 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 Unibel SA will offset losses from the drop in Unibel SA's long position.| Robertet vs. Tonnellerie Francois Freres | Robertet vs. Thermador Groupe SA | Robertet vs. Neurones | Robertet vs. Sartorius Stedim Biotech |
| Unibel SA vs. Savencia SA | Unibel SA vs. Societe LDC SA | Unibel SA vs. Robertet SA | Unibel SA vs. Malteries Franco Belges Socit |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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