Correlation Between Rubis SCA and Neolife SA
Can any of the company-specific risk be diversified away by investing in both Rubis SCA and Neolife 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 Rubis SCA and Neolife SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and Neolife SA, you can compare the effects of market volatilities on Rubis SCA and Neolife 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 Rubis SCA with a short position of Neolife SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and Neolife SA.
Diversification Opportunities for Rubis SCA and Neolife SA
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rubis and Neolife is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Neolife SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neolife SA 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 Neolife SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neolife SA has no effect on the direction of Rubis SCA i.e., Rubis SCA and Neolife SA go up and down completely randomly.
Pair Corralation between Rubis SCA and Neolife SA
Assuming the 90 days trading horizon Rubis SCA is expected to generate 0.56 times more return on investment than Neolife SA. However, Rubis SCA is 1.79 times less risky than Neolife SA. It trades about 0.13 of its potential returns per unit of risk. Neolife SA is currently generating about -0.09 per unit of risk. If you would invest 2,252 in Rubis SCA on September 12, 2024 and sell it today you would earn a total of 94.00 from holding Rubis SCA or generate 4.17% 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. Neolife SA
Performance |
| Timeline |
| Rubis SCA |
| Neolife SA |
Rubis SCA and Neolife SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis SCA and Neolife SA
The main advantage of trading using opposite Rubis SCA and Neolife SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA position performs unexpectedly, Neolife 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 Neolife SA will offset losses from the drop in Neolife SA's long position.| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
| Neolife SA vs. Thermador Groupe SA | Neolife SA vs. Samse SA | Neolife SA vs. Rubis SCA | Neolife SA 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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