Correlation Between Klepierre and Rubis SCA

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

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

Diversification Opportunities for Klepierre and Rubis SCA

0.84

Correlation Coefficient

Klepierre  Rubis SCA

Very poor diversification

The 3 months correlation between Klepierre and Rubis is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Klepierre SA and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA and Klepierre 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 Klepierre 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 Klepierre i.e., Klepierre and Rubis SCA go up and down completely randomly.

Pair Corralation between Klepierre and Rubis SCA

Assuming the 90 days horizon Klepierre SA is expected to generate 0.5 times more return on investment than Rubis SCA. However, Klepierre SA is 1.99 times less risky than Rubis SCA. It trades about 0.24 of its potential returns per unit of risk. Rubis SCA is currently generating about 0.11 per unit of risk. If you would invest  2,697  in Klepierre SA on December 30, 2024 and sell it today you would earn a total of  413.00  from holding Klepierre SA or generate 15.31% return on investment over 90 days.

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

Klepierre SA  vs.  Rubis SCA

Klepierre SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Klepierre SA are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Klepierre sustained solid returns over the last few months and may actually be approaching a breakup point.

Rubis SCA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rubis SCA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Rubis SCA may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Klepierre and Rubis SCA

The main advantage of trading using opposite Klepierre and Rubis SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klepierre 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 Klepierre 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.