Correlation Between Rubis SCA and Acheter Louer

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

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

Diversification Opportunities for Rubis SCA and Acheter Louer

-0.8

Correlation Coefficient

Rubis SCA  Acheter Louer

Pay attention - limited upside

The 3 months correlation between Rubis and Acheter is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Acheter Louer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acheter Louer 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 Acheter Louer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acheter Louer has no effect on the direction of Rubis SCA i.e., Rubis SCA and Acheter Louer go up and down completely randomly.

Pair Corralation between Rubis SCA and Acheter Louer

Assuming the 90 days trading horizon Rubis SCA is expected to generate 0.1 times more return on investment than Acheter Louer. However, Rubis SCA is 9.71 times less risky than Acheter Louer. It trades about 0.11 of its potential returns per unit of risk. Acheter Louer is currently generating about -0.33 per unit of risk. If you would invest  2,346  in Rubis SCA on December 30, 2024 and sell it today you would earn a total of  292.00  from holding Rubis SCA or generate 12.45% return on investment over 90 days.

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

Rubis SCA  vs.  Acheter Louer

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.

Acheter Louer

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acheter Louer has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Rubis SCA and Acheter Louer

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

The idea behind Rubis SCA and Acheter Louer 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.