Correlation Between Samse SA and Thermador Groupe

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

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

Diversification Opportunities for Samse SA and Thermador Groupe

0.47

Correlation Coefficient

Samse SA  Thermador Groupe

Very weak diversification

The 3 months correlation between Samse and Thermador is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samse SA and Thermador Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermador Groupe and Samse SA 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 Samse SA are associated (or correlated) with Thermador Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermador Groupe has no effect on the direction of Samse SA i.e., Samse SA and Thermador Groupe go up and down completely randomly.

Pair Corralation between Samse SA and Thermador Groupe

Assuming the 90 days trading horizon Samse SA is expected to under-perform the Thermador Groupe. In addition to that, Samse SA is 1.33 times more volatile than Thermador Groupe SA. It trades about -0.11 of its total potential returns per unit of risk. Thermador Groupe SA is currently generating about -0.11 per unit of volatility. If you would invest  7,760  in Thermador Groupe SA on September 3, 2024 and sell it today you would lose (810.00) from holding Thermador Groupe SA or give up 10.44% of portfolio value over 90 days.

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

Samse SA  vs.  Thermador Groupe SA

Samse SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samse 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 January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Thermador Groupe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thermador Groupe SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Samse SA and Thermador Groupe

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

The idea behind Samse SA and Thermador Groupe 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.