Correlation Between Figeac Aero and Rubis SCA

Can any of the company-specific risk be diversified away by investing in both Figeac Aero 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 Figeac Aero and Rubis SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Figeac Aero SA and Rubis SCA, you can compare the effects of market volatilities on Figeac Aero 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 Figeac Aero with a short position of Rubis SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figeac Aero and Rubis SCA.

Diversification Opportunities for Figeac Aero and Rubis SCA

0.0

Correlation Coefficient

Figeac Aero  Rubis SCA

Pay attention - limited upside

The 3 months correlation between Figeac and Rubis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Figeac Aero SA and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA and Figeac Aero 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 Figeac Aero 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 Figeac Aero i.e., Figeac Aero and Rubis SCA go up and down completely randomly.

Pair Corralation between Figeac Aero and Rubis SCA

Assuming the 90 days trading horizon Figeac Aero SA is expected to generate 0.84 times more return on investment than Rubis SCA. However, Figeac Aero SA is 1.19 times less risky than Rubis SCA. It trades about 0.01 of its potential returns per unit of risk. Rubis SCA is currently generating about 0.0 per unit of risk. If you would invest  594.00  in Figeac Aero SA on September 24, 2024 and sell it today you would earn a total of  2.00  from holding Figeac Aero SA or generate 0.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Figeac Aero SA  vs.  Rubis SCA

Figeac Aero SA

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Figeac Aero SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Figeac Aero is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Rubis SCA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rubis SCA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Rubis SCA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Figeac Aero and Rubis SCA

The main advantage of trading using opposite Figeac Aero and Rubis SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figeac Aero 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.

The idea behind Figeac Aero SA and Rubis SCA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.