Correlation Between Samse SA and Thermador Groupe
Can any of the company-specific risk be diversified away by investing in both Samse 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 Samse 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 Samse SA and Thermador Groupe SA, you can compare the effects of market volatilities on Samse 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 Samse SA with a short position of Thermador Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samse SA and Thermador Groupe.
Diversification Opportunities for Samse SA and Thermador Groupe
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samse and Thermador is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samse 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 Samse 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 Samse 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 Samse SA i.e., Samse SA and Thermador Groupe go up and down completely randomly.
Pair Corralation between Samse SA and Thermador Groupe
Assuming the 90 days trading horizon Samse SA is expected to under-perform the Thermador Groupe. But the stock apears to be less risky and, when comparing its historical volatility, Samse SA is 1.49 times less risky than Thermador Groupe. The stock trades about -0.16 of its potential returns per unit of risk. The Thermador Groupe SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 7,100 in Thermador Groupe SA on November 5, 2024 and sell it today you would lose (30.00) from holding Thermador Groupe SA or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samse SA vs. Thermador Groupe SA
Performance |
| Timeline |
| Samse SA |
| Thermador Groupe |
Samse SA and Thermador Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samse SA and Thermador Groupe
The main advantage of trading using opposite Samse SA and Thermador Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samse 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.The idea behind Samse SA and Thermador Groupe SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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