Correlation Between Thermador Groupe and Rubis SCA
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Rubis SCA 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 Rubis SCA 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 Rubis SCA, you can compare the effects of market volatilities on Thermador Groupe and Rubis SCA 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 Rubis SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Rubis SCA.
Diversification Opportunities for Thermador Groupe and Rubis SCA
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thermador and Rubis is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA 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 Rubis SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis SCA has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Rubis SCA go up and down completely randomly.
Pair Corralation between Thermador Groupe and Rubis SCA
Assuming the 90 days trading horizon Thermador Groupe SA is expected to under-perform the Rubis SCA. But the stock apears to be less risky and, when comparing its historical volatility, Thermador Groupe SA is 1.09 times less risky than Rubis SCA. The stock trades about -0.03 of its potential returns per unit of risk. The Rubis SCA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,236 in Rubis SCA on August 31, 2024 and sell it today you would earn a total of 36.00 from holding Rubis SCA or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Thermador Groupe SA vs. Rubis SCA
Performance |
| Timeline |
| Thermador Groupe |
| Rubis SCA |
Thermador Groupe and Rubis SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Rubis SCA
The main advantage of trading using opposite Thermador Groupe and Rubis SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Rubis SCA 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 Rubis SCA will offset losses from the drop in Rubis SCA'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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