Correlation Between Thermador Groupe and Tonnellerie Francois
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Tonnellerie Francois 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 Tonnellerie Francois 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 Tonnellerie Francois Freres, you can compare the effects of market volatilities on Thermador Groupe and Tonnellerie Francois 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 Tonnellerie Francois. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Tonnellerie Francois.
Diversification Opportunities for Thermador Groupe and Tonnellerie Francois
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thermador and Tonnellerie is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Tonnellerie Francois Freres in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonnellerie Francois 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 Tonnellerie Francois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonnellerie Francois has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Tonnellerie Francois go up and down completely randomly.
Pair Corralation between Thermador Groupe and Tonnellerie Francois
Assuming the 90 days trading horizon Thermador Groupe SA is expected to under-perform the Tonnellerie Francois. But the stock apears to be less risky and, when comparing its historical volatility, Thermador Groupe SA is 1.15 times less risky than Tonnellerie Francois. The stock trades about -0.11 of its potential returns per unit of risk. The Tonnellerie Francois Freres is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,987 in Tonnellerie Francois Freres on August 30, 2024 and sell it today you would lose (87.00) from holding Tonnellerie Francois Freres or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermador Groupe SA vs. Tonnellerie Francois Freres
Performance |
| Timeline |
| Thermador Groupe |
| Tonnellerie Francois |
Thermador Groupe and Tonnellerie Francois Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Tonnellerie Francois
The main advantage of trading using opposite Thermador Groupe and Tonnellerie Francois positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Tonnellerie Francois 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 Tonnellerie Francois will offset losses from the drop in Tonnellerie Francois' long position.| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
| Tonnellerie Francois vs. Neurones | Tonnellerie Francois vs. Aubay Socit Anonyme | Tonnellerie Francois vs. Infotel SA | Tonnellerie Francois vs. Manitou BF 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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