Correlation Between Rubis SCA and Financiere Marjos

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

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

Diversification Opportunities for Rubis SCA and Financiere Marjos

-0.64

Correlation Coefficient

Rubis SCA  Financiere Marjos

Excellent diversification

The 3 months correlation between Rubis and Financiere is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Financiere Marjos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiere Marjos 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 Financiere Marjos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiere Marjos has no effect on the direction of Rubis SCA i.e., Rubis SCA and Financiere Marjos go up and down completely randomly.

Pair Corralation between Rubis SCA and Financiere Marjos

Assuming the 90 days trading horizon Rubis SCA is expected to generate 0.27 times more return on investment than Financiere Marjos. However, Rubis SCA is 3.72 times less risky than Financiere Marjos. It trades about 0.09 of its potential returns per unit of risk. Financiere Marjos SA is currently generating about -0.04 per unit of risk. If you would invest  2,316  in Rubis SCA on December 24, 2024 and sell it today you would earn a total of  222.00  from holding Rubis SCA or generate 9.59% return on investment over 90 days.

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

Rubis SCA  vs.  Financiere Marjos SA

Rubis SCA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rubis SCA are ranked lower than 7 (%) 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.

Financiere Marjos

Risk-Adjusted Performance

Very Weak

Over the last 90 days Financiere Marjos SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Rubis SCA and Financiere Marjos

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

The idea behind Rubis SCA and Financiere Marjos 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.