Correlation Between Rubis SCA and Aubay Socit
Can any of the company-specific risk be diversified away by investing in both Rubis SCA and Aubay Socit 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 Aubay Socit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and Aubay Socit Anonyme, you can compare the effects of market volatilities on Rubis SCA and Aubay Socit 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 Aubay Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and Aubay Socit.
Diversification Opportunities for Rubis SCA and Aubay Socit
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rubis and Aubay is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Aubay Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aubay Socit Anonyme 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 Aubay Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aubay Socit Anonyme has no effect on the direction of Rubis SCA i.e., Rubis SCA and Aubay Socit go up and down completely randomly.
Pair Corralation between Rubis SCA and Aubay Socit
Assuming the 90 days trading horizon Rubis SCA is expected to generate 1.08 times more return on investment than Aubay Socit. However, Rubis SCA is 1.08 times more volatile than Aubay Socit Anonyme. It trades about 0.01 of its potential returns per unit of risk. Aubay Socit Anonyme is currently generating about 0.01 per unit of risk. If you would invest 2,236 in Rubis SCA on August 31, 2024 and sell it today you would earn a total of 36.00 from holding Rubis SCA or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Rubis SCA vs. Aubay Socit Anonyme
Performance |
| Timeline |
| Rubis SCA |
| Aubay Socit Anonyme |
Rubis SCA and Aubay Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis SCA and Aubay Socit
The main advantage of trading using opposite Rubis SCA and Aubay Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA position performs unexpectedly, Aubay Socit 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 Aubay Socit will offset losses from the drop in Aubay Socit's long position.| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
| Aubay Socit vs. Neurones | Aubay Socit vs. Infotel SA | Aubay Socit vs. Alten SA | Aubay Socit 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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