Correlation Between Thermador Groupe and Malteries Franco
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Malteries Franco 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 Malteries Franco 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 Malteries Franco Belges Socit, you can compare the effects of market volatilities on Thermador Groupe and Malteries Franco 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 Malteries Franco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Malteries Franco.
Diversification Opportunities for Thermador Groupe and Malteries Franco
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thermador and Malteries is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Malteries Franco Belges Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malteries Franco Belges 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 Malteries Franco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malteries Franco Belges has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Malteries Franco go up and down completely randomly.
Pair Corralation between Thermador Groupe and Malteries Franco
Assuming the 90 days trading horizon Thermador Groupe SA is expected to under-perform the Malteries Franco. But the stock apears to be less risky and, when comparing its historical volatility, Thermador Groupe SA is 1.02 times less risky than Malteries Franco. The stock trades about -0.02 of its potential returns per unit of risk. The Malteries Franco Belges Socit is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 54,640 in Malteries Franco Belges Socit on August 30, 2024 and sell it today you would earn a total of 17,360 from holding Malteries Franco Belges Socit or generate 31.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.87% |
| Values | Daily Returns |
Thermador Groupe SA vs. Malteries Franco Belges Socit
Performance |
| Timeline |
| Thermador Groupe |
| Malteries Franco Belges |
Thermador Groupe and Malteries Franco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Malteries Franco
The main advantage of trading using opposite Thermador Groupe and Malteries Franco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Malteries Franco 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 Malteries Franco will offset losses from the drop in Malteries Franco'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 |
| Malteries Franco vs. Grard Perrier Industrie | Malteries Franco vs. Robertet SA | Malteries Franco vs. Thermador Groupe SA | Malteries Franco vs. Piscines Desjoyaux SA |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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