Correlation Between Rubis SCA and Poujoulat
Can any of the company-specific risk be diversified away by investing in both Rubis SCA and Poujoulat 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 Rubis SCA and Poujoulat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and Poujoulat SA, you can compare the effects of market volatilities on Rubis SCA and Poujoulat 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 Rubis SCA with a short position of Poujoulat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and Poujoulat.
Diversification Opportunities for Rubis SCA and Poujoulat
Very weak diversification
The 3 months correlation between Rubis and Poujoulat is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Poujoulat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poujoulat SA and Rubis SCA 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 Rubis SCA are associated (or correlated) with Poujoulat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poujoulat SA has no effect on the direction of Rubis SCA i.e., Rubis SCA and Poujoulat go up and down completely randomly.
Pair Corralation between Rubis SCA and Poujoulat
Assuming the 90 days trading horizon Rubis SCA is expected to generate 1.33 times more return on investment than Poujoulat. However, Rubis SCA is 1.33 times more volatile than Poujoulat SA. It trades about 0.0 of its potential returns per unit of risk. Poujoulat SA is currently generating about -0.07 per unit of risk. If you would invest 2,316 in Rubis SCA on September 25, 2024 and sell it today you would lose (20.00) from holding Rubis SCA or give up 0.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Rubis SCA vs. Poujoulat SA
Performance |
Timeline |
Rubis SCA |
Poujoulat SA |
Rubis SCA and Poujoulat Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rubis SCA and Poujoulat
The main advantage of trading using opposite Rubis SCA and Poujoulat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA position performs unexpectedly, Poujoulat 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 Poujoulat will offset losses from the drop in Poujoulat's long position.Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
Poujoulat vs. Thermador Groupe SA | Poujoulat vs. Rubis SCA | Poujoulat vs. Vicat SA | Poujoulat vs. Trigano 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |