Correlation Between Rubis SCA and Sword Group
Can any of the company-specific risk be diversified away by investing in both Rubis SCA and Sword Group 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 Sword Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and Sword Group SE, you can compare the effects of market volatilities on Rubis SCA and Sword Group 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 Sword Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and Sword Group.
Diversification Opportunities for Rubis SCA and Sword Group
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rubis and Sword is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Sword Group SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sword Group 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 Sword Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sword Group SE has no effect on the direction of Rubis SCA i.e., Rubis SCA and Sword Group go up and down completely randomly.
Pair Corralation between Rubis SCA and Sword Group
Assuming the 90 days trading horizon Rubis SCA is expected to generate 1.29 times more return on investment than Sword Group. However, Rubis SCA is 1.29 times more volatile than Sword Group SE. It trades about 0.22 of its potential returns per unit of risk. Sword Group SE is currently generating about -0.19 per unit of risk. If you would invest 2,478 in Rubis SCA on December 1, 2024 and sell it today you would earn a total of 158.00 from holding Rubis SCA or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubis SCA vs. Sword Group SE
Performance |
| Timeline |
| Rubis SCA |
| Sword Group SE |
Rubis SCA and Sword Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis SCA and Sword Group
The main advantage of trading using opposite Rubis SCA and Sword Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA position performs unexpectedly, Sword Group 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 Sword Group will offset losses from the drop in Sword Group's long position.| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
| Sword Group vs. Aubay Socit Anonyme | Sword Group vs. Neurones | Sword Group vs. Rubis SCA | Sword Group vs. Linedata Services 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world |