Correlation Between Thermador Groupe and Akwel SA
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Akwel SA 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 Thermador Groupe and Akwel SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermador Groupe SA and Akwel SA, you can compare the effects of market volatilities on Thermador Groupe and Akwel SA 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 Thermador Groupe with a short position of Akwel SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Akwel SA.
Diversification Opportunities for Thermador Groupe and Akwel SA
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thermador and Akwel is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Akwel SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akwel SA and Thermador Groupe 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 Thermador Groupe SA are associated (or correlated) with Akwel SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akwel SA has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Akwel SA go up and down completely randomly.
Pair Corralation between Thermador Groupe and Akwel SA
Assuming the 90 days trading horizon Thermador Groupe SA is expected to generate 0.46 times more return on investment than Akwel SA. However, Thermador Groupe SA is 2.19 times less risky than Akwel SA. It trades about -0.25 of its potential returns per unit of risk. Akwel SA is currently generating about -0.12 per unit of risk. 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermador Groupe SA vs. Akwel SA
Performance |
| Timeline |
| Thermador Groupe |
| Akwel SA |
Thermador Groupe and Akwel SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Akwel SA
The main advantage of trading using opposite Thermador Groupe and Akwel SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Akwel SA 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 Akwel SA will offset losses from the drop in Akwel SA's long position.| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
| Akwel SA vs. SA Catana Group | Akwel SA vs. Verallia | Akwel SA vs. Thermador Groupe SA | Akwel SA vs. Maisons du Monde |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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