Correlation Between Rubis SCA and Etablissements Maurel

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

By analyzing existing cross correlation between Rubis SCA and Etablissements Maurel et, you can compare the effects of market volatilities on Rubis SCA and Etablissements Maurel 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 Etablissements Maurel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and Etablissements Maurel.

Diversification Opportunities for Rubis SCA and Etablissements Maurel

0.23

Correlation Coefficient

Rubis SCA  Etablissements Maurel

Modest diversification

The 3 months correlation between Rubis and Etablissements is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Etablissements Maurel et in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etablissements Maurel 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 Etablissements Maurel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etablissements Maurel has no effect on the direction of Rubis SCA i.e., Rubis SCA and Etablissements Maurel go up and down completely randomly.

Pair Corralation between Rubis SCA and Etablissements Maurel

Assuming the 90 days trading horizon Rubis SCA is expected to under-perform the Etablissements Maurel. In addition to that, Rubis SCA is 1.37 times more volatile than Etablissements Maurel et. It trades about -0.12 of its total potential returns per unit of risk. Etablissements Maurel et is currently generating about -0.02 per unit of volatility. If you would invest  518.00  in Etablissements Maurel et on September 2, 2024 and sell it today you would lose (17.00) from holding Etablissements Maurel et or give up 3.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Rubis SCA  vs.  Etablissements Maurel et

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 weak performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Etablissements Maurel

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Rubis SCA and Etablissements Maurel

The main advantage of trading using opposite Rubis SCA and Etablissements Maurel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA position performs unexpectedly, Etablissements Maurel 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 Etablissements Maurel will offset losses from the drop in Etablissements Maurel's long position.

The idea behind Rubis SCA and Etablissements Maurel et 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 Valuation module to check real value of public entities based on technical and fundamental data.