Correlation Between Rosenbauer International and Unilever PLC

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

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

Diversification Opportunities for Rosenbauer International and Unilever PLC

0.0

Correlation Coefficient

Rosenbauer International  Unilever PLC

Pay attention - limited upside

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

Pair Corralation between Rosenbauer International and Unilever PLC

If you would invest  0.00  in Rosenbauer International AG on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Rosenbauer International AG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

Rosenbauer International AG  vs.  Unilever PLC

Rosenbauer International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rosenbauer International AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Rosenbauer International is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Unilever PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unilever PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Rosenbauer International and Unilever PLC

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

The idea behind Rosenbauer International AG and Unilever PLC 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.