Correlation Between Thermador Groupe and Gaussin
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Gaussin 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 Gaussin 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 Gaussin, you can compare the effects of market volatilities on Thermador Groupe and Gaussin 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 Gaussin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Gaussin.
Diversification Opportunities for Thermador Groupe and Gaussin
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thermador and Gaussin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Gaussin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaussin 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 Gaussin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaussin has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Gaussin go up and down completely randomly.
Pair Corralation between Thermador Groupe and Gaussin
Assuming the 90 days trading horizon Thermador Groupe SA is expected to generate 0.14 times more return on investment than Gaussin. However, Thermador Groupe SA is 6.98 times less risky than Gaussin. It trades about -0.02 of its potential returns per unit of risk. Gaussin is currently generating about -0.02 per unit of risk. If you would invest 8,576 in Thermador Groupe SA on September 24, 2024 and sell it today you would lose (1,586) from holding Thermador Groupe SA or give up 18.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermador Groupe SA vs. Gaussin
Performance |
| Timeline |
| Thermador Groupe |
| Gaussin |
Thermador Groupe and Gaussin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Gaussin
The main advantage of trading using opposite Thermador Groupe and Gaussin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Gaussin 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 Gaussin will offset losses from the drop in Gaussin'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 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |