Correlation Between Rubis SCA and Antin IP
Can any of the company-specific risk be diversified away by investing in both Rubis SCA and Antin IP 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 Antin IP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and Antin IP SA, you can compare the effects of market volatilities on Rubis SCA and Antin IP 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 Antin IP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and Antin IP.
Diversification Opportunities for Rubis SCA and Antin IP
Average diversification
The 3 months correlation between Rubis and Antin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Antin IP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antin IP SA 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 Antin IP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antin IP SA has no effect on the direction of Rubis SCA i.e., Rubis SCA and Antin IP go up and down completely randomly.
Pair Corralation between Rubis SCA and Antin IP
Assuming the 90 days trading horizon Rubis SCA is expected to generate 0.69 times more return on investment than Antin IP. However, Rubis SCA is 1.46 times less risky than Antin IP. It trades about 0.02 of its potential returns per unit of risk. Antin IP SA is currently generating about -0.03 per unit of risk. If you would invest 2,068 in Rubis SCA on September 16, 2024 and sell it today you would earn a total of 256.00 from holding Rubis SCA or generate 12.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Rubis SCA vs. Antin IP SA
Performance |
Timeline |
Rubis SCA |
Antin IP SA |
Rubis SCA and Antin IP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rubis SCA and Antin IP
The main advantage of trading using opposite Rubis SCA and Antin IP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA position performs unexpectedly, Antin IP 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 Antin IP will offset losses from the drop in Antin IP's long position.Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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