Correlation Between Rubis SCA and Financiere Marjos
Can any of the company-specific risk be diversified away by investing in both Rubis SCA and Financiere Marjos 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 Financiere Marjos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and Financiere Marjos SA, you can compare the effects of market volatilities on Rubis SCA and Financiere Marjos 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 Financiere Marjos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and Financiere Marjos.
Diversification Opportunities for Rubis SCA and Financiere Marjos
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rubis and Financiere is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Financiere Marjos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiere Marjos 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 Financiere Marjos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiere Marjos has no effect on the direction of Rubis SCA i.e., Rubis SCA and Financiere Marjos go up and down completely randomly.
Pair Corralation between Rubis SCA and Financiere Marjos
Assuming the 90 days trading horizon Rubis SCA is expected to under-perform the Financiere Marjos. But the stock apears to be less risky and, when comparing its historical volatility, Rubis SCA is 1.77 times less risky than Financiere Marjos. The stock trades about -0.09 of its potential returns per unit of risk. The Financiere Marjos SA is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 7.60 in Financiere Marjos SA on September 1, 2024 and sell it today you would earn a total of 2.40 from holding Financiere Marjos SA or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rubis SCA vs. Financiere Marjos SA
Performance |
| Timeline |
| Rubis SCA |
| Financiere Marjos |
Rubis SCA and Financiere Marjos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis SCA and Financiere Marjos
The main advantage of trading using opposite Rubis SCA and Financiere Marjos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA position performs unexpectedly, Financiere Marjos 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 Financiere Marjos will offset losses from the drop in Financiere Marjos' long position.| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
| Financiere Marjos vs. Fiducial Office Solutions | Financiere Marjos vs. Foncire Euris SA | Financiere Marjos vs. Bernard Loisea | Financiere Marjos vs. Coheris 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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