Correlation Between Rubis SCA and FreelanceCom
Can any of the company-specific risk be diversified away by investing in both Rubis SCA and FreelanceCom 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 Rubis SCA and FreelanceCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and FreelanceCom, you can compare the effects of market volatilities on Rubis SCA and FreelanceCom 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 Rubis SCA with a short position of FreelanceCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and FreelanceCom.
Diversification Opportunities for Rubis SCA and FreelanceCom
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rubis and FreelanceCom is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and FreelanceCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FreelanceCom and Rubis SCA 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 Rubis SCA are associated (or correlated) with FreelanceCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FreelanceCom has no effect on the direction of Rubis SCA i.e., Rubis SCA and FreelanceCom go up and down completely randomly.
Pair Corralation between Rubis SCA and FreelanceCom
Assuming the 90 days trading horizon Rubis SCA is expected to under-perform the FreelanceCom. But the stock apears to be less risky and, when comparing its historical volatility, Rubis SCA is 1.9 times less risky than FreelanceCom. The stock trades about -0.05 of its potential returns per unit of risk. The FreelanceCom is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 270.00 in FreelanceCom on September 22, 2024 and sell it today you would earn a total of 8.00 from holding FreelanceCom or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubis SCA vs. FreelanceCom
Performance |
| Timeline |
| Rubis SCA |
| FreelanceCom |
Rubis SCA and FreelanceCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis SCA and FreelanceCom
The main advantage of trading using opposite Rubis SCA and FreelanceCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA position performs unexpectedly, FreelanceCom 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 FreelanceCom will offset losses from the drop in FreelanceCom's long position.| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
| FreelanceCom vs. Thermador Groupe SA | FreelanceCom vs. Samse SA | FreelanceCom vs. Rubis SCA | FreelanceCom vs. Trigano 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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