Correlation Between Thermador Groupe and Orege Socit

Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Orege Socit 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 Orege Socit 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 Orege Socit Anonyme, you can compare the effects of market volatilities on Thermador Groupe and Orege Socit 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 Orege Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Orege Socit.

Diversification Opportunities for Thermador Groupe and Orege Socit

0.0

Correlation Coefficient

Thermador Groupe  Orege Socit

Pay attention - limited upside

The 3 months correlation between Thermador and Orege is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Orege Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orege Socit Anonyme 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 Orege Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orege Socit Anonyme has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Orege Socit go up and down completely randomly.

Pair Corralation between Thermador Groupe and Orege Socit

If you would invest  0.00  in Orege Socit Anonyme on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Orege Socit Anonyme or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Thermador Groupe SA  vs.  Orege Socit Anonyme

Thermador Groupe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thermador Groupe SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Orege Socit Anonyme

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Orege Socit Anonyme has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Orege Socit is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Thermador Groupe and Orege Socit

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

The idea behind Thermador Groupe SA and Orege Socit Anonyme 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.

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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.