Correlation Between Thales SA and Thales SA
Can any of the company-specific risk be diversified away by investing in both Thales SA and Thales SA 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 Thales SA and Thales SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thales SA ADR and Thales SA, you can compare the effects of market volatilities on Thales SA and Thales SA 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 Thales SA with a short position of Thales SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thales SA and Thales SA.
Diversification Opportunities for Thales SA and Thales SA
Almost no diversification
The 3 months correlation between Thales and Thales is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Thales SA ADR and Thales SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thales SA and Thales SA 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 Thales SA ADR are associated (or correlated) with Thales SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thales SA has no effect on the direction of Thales SA i.e., Thales SA and Thales SA go up and down completely randomly.
Pair Corralation between Thales SA and Thales SA
Assuming the 90 days horizon Thales SA is expected to generate 1.57 times less return on investment than Thales SA. But when comparing it to its historical volatility, Thales SA ADR is 1.5 times less risky than Thales SA. It trades about 0.04 of its potential returns per unit of risk. Thales SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 13,036 in Thales SA on November 2, 2024 and sell it today you would earn a total of 3,064 from holding Thales SA or generate 23.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 68.42% |
| Values | Daily Returns |
Thales SA ADR vs. Thales SA
Performance |
| Timeline |
| Thales SA ADR |
| Thales SA |
Thales SA and Thales SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thales SA and Thales SA
The main advantage of trading using opposite Thales SA and Thales SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thales SA position performs unexpectedly, Thales SA 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 Thales SA will offset losses from the drop in Thales SA's long position.| Thales SA vs. MTU Aero Engines | Thales SA vs. Safran SA | Thales SA vs. Leonardo SpA ADR | Thales SA vs. Airbus Group NV |
| Thales SA vs. MTU Aero Engines | Thales SA vs. Singapore Technologies Engineering | Thales SA vs. Safran SA | Thales SA vs. Thales SA ADR |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |