Correlation Between Robertet and Wendel

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

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

Diversification Opportunities for Robertet and Wendel

-0.23

Correlation Coefficient

Robertet  Wendel

Very good diversification

The 3 months correlation between Robertet and Wendel is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Robertet SA and Wendel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wendel and Robertet 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 Robertet SA are associated (or correlated) with Wendel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wendel has no effect on the direction of Robertet i.e., Robertet and Wendel go up and down completely randomly.

Pair Corralation between Robertet and Wendel

Assuming the 90 days trading horizon Robertet SA is expected to under-perform the Wendel. In addition to that, Robertet is 1.22 times more volatile than Wendel. It trades about -0.01 of its total potential returns per unit of risk. Wendel is currently generating about 0.27 per unit of volatility. If you would invest  8,227  in Wendel on April 25, 2025 and sell it today you would earn a total of  1,143  from holding Wendel or generate 13.89% return on investment over 90 days.

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

Robertet SA  vs.  Wendel

Robertet SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robertet SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Robertet is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Wendel

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wendel are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Wendel sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Robertet and Wendel

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

The idea behind Robertet SA and Wendel 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.