Correlation Between Cloetta AB and ROGERS SUGAR

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

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

Diversification Opportunities for Cloetta AB and ROGERS SUGAR

0.13

Correlation Coefficient

Cloetta AB  ROGERS SUGAR

Average diversification

The 3 months correlation between Cloetta and ROGERS is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cloetta AB and ROGERS SUGAR INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROGERS SUGAR INC and Cloetta AB 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 Cloetta AB are associated (or correlated) with ROGERS SUGAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROGERS SUGAR INC has no effect on the direction of Cloetta AB i.e., Cloetta AB and ROGERS SUGAR go up and down completely randomly.

Pair Corralation between Cloetta AB and ROGERS SUGAR

Assuming the 90 days horizon Cloetta AB is expected to generate 2.74 times more return on investment than ROGERS SUGAR. However, Cloetta AB is 2.74 times more volatile than ROGERS SUGAR INC. It trades about 0.07 of its potential returns per unit of risk. ROGERS SUGAR INC is currently generating about 0.01 per unit of risk. If you would invest  252.00  in Cloetta AB on April 24, 2025 and sell it today you would earn a total of  34.00  from holding Cloetta AB or generate 13.49% return on investment over 90 days.

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

Cloetta AB  vs.  ROGERS SUGAR INC

Cloetta AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cloetta AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Cloetta AB reported solid returns over the last few months and may actually be approaching a breakup point.

ROGERS SUGAR INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days ROGERS SUGAR INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ROGERS SUGAR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cloetta AB and ROGERS SUGAR

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

The idea behind Cloetta AB and ROGERS SUGAR INC 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.