Correlation Between Rubis SCA and SCOR SE
Can any of the company-specific risk be diversified away by investing in both Rubis SCA and SCOR SE 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 SCOR SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and SCOR SE, you can compare the effects of market volatilities on Rubis SCA and SCOR SE 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 SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and SCOR SE.
Diversification Opportunities for Rubis SCA and SCOR SE
Very good diversification
The 3 months correlation between Rubis and SCOR is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE 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 SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of Rubis SCA i.e., Rubis SCA and SCOR SE go up and down completely randomly.
Pair Corralation between Rubis SCA and SCOR SE
Assuming the 90 days trading horizon Rubis SCA is expected to under-perform the SCOR SE. In addition to that, Rubis SCA is 1.28 times more volatile than SCOR SE. It trades about -0.07 of its total potential returns per unit of risk. SCOR SE is currently generating about 0.32 per unit of volatility. If you would invest 2,012 in SCOR SE on August 24, 2024 and sell it today you would earn a total of 376.00 from holding SCOR SE or generate 18.69% 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. SCOR SE
Performance |
| Timeline |
| Rubis SCA |
| SCOR SE |
Rubis SCA and SCOR SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis SCA and SCOR SE
The main advantage of trading using opposite Rubis SCA and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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