Correlation Between Safran SA and Thermador Groupe
Can any of the company-specific risk be diversified away by investing in both Safran SA and Thermador Groupe 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 Safran SA and Thermador Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safran SA and Thermador Groupe SA, you can compare the effects of market volatilities on Safran SA and Thermador Groupe 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 Safran SA with a short position of Thermador Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safran SA and Thermador Groupe.
Diversification Opportunities for Safran SA and Thermador Groupe
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safran and Thermador is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Safran SA and Thermador Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermador Groupe and Safran SA 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 Safran SA are associated (or correlated) with Thermador Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermador Groupe has no effect on the direction of Safran SA i.e., Safran SA and Thermador Groupe go up and down completely randomly.
Pair Corralation between Safran SA and Thermador Groupe
Assuming the 90 days trading horizon Safran SA is expected to under-perform the Thermador Groupe. In addition to that, Safran SA is 1.43 times more volatile than Thermador Groupe SA. It trades about -0.2 of its total potential returns per unit of risk. Thermador Groupe SA is currently generating about -0.25 per unit of volatility. If you would invest 7,580 in Thermador Groupe SA on September 12, 2024 and sell it today you would lose (560.00) from holding Thermador Groupe SA or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safran SA vs. Thermador Groupe SA
Performance |
| Timeline |
| Safran SA |
| Thermador Groupe |
Safran SA and Thermador Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safran SA and Thermador Groupe
The main advantage of trading using opposite Safran SA and Thermador Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safran SA position performs unexpectedly, Thermador Groupe 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 Thermador Groupe will offset losses from the drop in Thermador Groupe's long position.| Safran SA vs. Thermador Groupe SA | Safran SA vs. Samse SA | Safran SA vs. Rubis SCA | Safran SA vs. Trigano SA |
| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |