Correlation Between Thermador Groupe and Lexibook Linguistic
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Lexibook Linguistic 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 Lexibook Linguistic 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 Lexibook Linguistic Electronic, you can compare the effects of market volatilities on Thermador Groupe and Lexibook Linguistic 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 Lexibook Linguistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Lexibook Linguistic.
Diversification Opportunities for Thermador Groupe and Lexibook Linguistic
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thermador and Lexibook is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Lexibook Linguistic Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexibook Linguistic 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 Lexibook Linguistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexibook Linguistic has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Lexibook Linguistic go up and down completely randomly.
Pair Corralation between Thermador Groupe and Lexibook Linguistic
Assuming the 90 days trading horizon Thermador Groupe SA is expected to under-perform the Lexibook Linguistic. But the stock apears to be less risky and, when comparing its historical volatility, Thermador Groupe SA is 1.97 times less risky than Lexibook Linguistic. The stock trades about -0.07 of its potential returns per unit of risk. The Lexibook Linguistic Electronic is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Lexibook Linguistic Electronic on October 20, 2024 and sell it today you would earn a total of 51.00 from holding Lexibook Linguistic Electronic or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermador Groupe SA vs. Lexibook Linguistic Electronic
Performance |
| Timeline |
| Thermador Groupe |
| Lexibook Linguistic |
Thermador Groupe and Lexibook Linguistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Lexibook Linguistic
The main advantage of trading using opposite Thermador Groupe and Lexibook Linguistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Lexibook Linguistic 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 Lexibook Linguistic will offset losses from the drop in Lexibook Linguistic'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 |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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