Correlation Between Seche Environnem and Rubis SCA

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

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

Diversification Opportunities for Seche Environnem and Rubis SCA

0.77

Correlation Coefficient

Seche Environnem  Rubis SCA

Poor diversification

The 3 months correlation between Seche and Rubis is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Seche Environnem and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA and Seche Environnem 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 Seche Environnem are associated (or correlated) with Rubis SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis SCA has no effect on the direction of Seche Environnem i.e., Seche Environnem and Rubis SCA go up and down completely randomly.

Pair Corralation between Seche Environnem and Rubis SCA

Assuming the 90 days trading horizon Seche Environnem is expected to generate 2.31 times more return on investment than Rubis SCA. However, Seche Environnem is 2.31 times more volatile than Rubis SCA. It trades about 0.2 of its potential returns per unit of risk. Rubis SCA is currently generating about 0.15 per unit of risk. If you would invest  7,770  in Seche Environnem on April 24, 2025 and sell it today you would earn a total of  2,410  from holding Seche Environnem or generate 31.02% return on investment over 90 days.

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

Seche Environnem  vs.  Rubis SCA

Seche Environnem

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Seche Environnem are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Seche Environnem sustained solid returns over the last few months and may actually be approaching a breakup point.

Rubis SCA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rubis SCA are ranked lower than 11 (%) 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 August 2025.

Pair Trading with Seche Environnem and Rubis SCA

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

The idea behind Seche Environnem and Rubis SCA 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.