Correlation Between Thermador Groupe and Roche Bobois
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Roche Bobois 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 Roche Bobois 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 Roche Bobois, you can compare the effects of market volatilities on Thermador Groupe and Roche Bobois 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 Roche Bobois. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Roche Bobois.
Diversification Opportunities for Thermador Groupe and Roche Bobois
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thermador and Roche is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Roche Bobois in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roche Bobois 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 Roche Bobois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roche Bobois has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Roche Bobois go up and down completely randomly.
Pair Corralation between Thermador Groupe and Roche Bobois
Assuming the 90 days trading horizon Thermador Groupe SA is expected to under-perform the Roche Bobois. But the stock apears to be less risky and, when comparing its historical volatility, Thermador Groupe SA is 1.16 times less risky than Roche Bobois. The stock trades about -0.02 of its potential returns per unit of risk. The Roche Bobois is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,270 in Roche Bobois on August 31, 2024 and sell it today you would earn a total of 510.00 from holding Roche Bobois or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Thermador Groupe SA vs. Roche Bobois
Performance |
| Timeline |
| Thermador Groupe |
| Roche Bobois |
Thermador Groupe and Roche Bobois Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Roche Bobois
The main advantage of trading using opposite Thermador Groupe and Roche Bobois positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Roche Bobois 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 Roche Bobois will offset losses from the drop in Roche Bobois' long position.| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
| Roche Bobois vs. SA Catana Group | Roche Bobois vs. Verallia | Roche Bobois vs. Thermador Groupe SA | Roche Bobois 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |