Correlation Between Robertet and Samse SA

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

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

Diversification Opportunities for Robertet and Samse SA

0.34

Correlation Coefficient

Robertet  Samse SA

Weak diversification

The 3 months correlation between Robertet and Samse is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Robertet SA and Samse SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samse SA and Robertet 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 Robertet SA are associated (or correlated) with Samse SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samse SA has no effect on the direction of Robertet i.e., Robertet and Samse SA go up and down completely randomly.

Pair Corralation between Robertet and Samse SA

Assuming the 90 days trading horizon Robertet SA is expected to under-perform the Samse SA. But the stock apears to be less risky and, when comparing its historical volatility, Robertet SA is 1.36 times less risky than Samse SA. The stock trades about -0.05 of its potential returns per unit of risk. The Samse SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  14,350  in Samse SA on December 30, 2024 and sell it today you would earn a total of  250.00  from holding Samse SA or generate 1.74% return on investment over 90 days.

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

Robertet SA  vs.  Samse SA

Robertet SA

Risk-Adjusted Performance

Very Weak

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

Samse SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Samse SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Samse SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Robertet and Samse SA

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

The idea behind Robertet SA and Samse SA 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.