Correlation Between Rio2 and DIeteren Group

Can any of the company-specific risk be diversified away by investing in both Rio2 and DIeteren Group 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 Rio2 and DIeteren Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Rio2 and DIeteren Group SA, you can compare the effects of market volatilities on Rio2 and DIeteren Group 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 Rio2 with a short position of DIeteren Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rio2 and DIeteren Group.

Diversification Opportunities for Rio2 and DIeteren Group

0.0

Correlation Coefficient

Rio2  DIeteren Group

Pay attention - limited upside

The 3 months correlation between Rio2 and DIeteren is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rio2 and DIeteren Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIeteren Group SA and Rio2 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 Rio2 are associated (or correlated) with DIeteren Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIeteren Group SA has no effect on the direction of Rio2 i.e., Rio2 and DIeteren Group go up and down completely randomly.

Pair Corralation between Rio2 and DIeteren Group

If you would invest (100.00) in DIeteren Group SA on August 26, 2025 and sell it today you would earn a total of  100.00  from holding DIeteren Group SA or generate -100.0% return on investment over 90 days.

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

Rio2  vs.  DIeteren Group SA

Rio2

Risk-Adjusted Performance

Fair

Over the last 90 days Rio2 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Rio2 is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

DIeteren Group SA

Risk-Adjusted Performance

Weakest

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

Pair Trading with Rio2 and DIeteren Group

The main advantage of trading using opposite Rio2 and DIeteren Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rio2 position performs unexpectedly, DIeteren Group 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 DIeteren Group will offset losses from the drop in DIeteren Group's long position.

The idea behind Rio2 and DIeteren Group 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.