Correlation Between Pfeiffer Vacuum and Centaur Media
Can any of the company-specific risk be diversified away by investing in both Pfeiffer Vacuum and Centaur Media 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 Pfeiffer Vacuum and Centaur Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfeiffer Vacuum Technology and Centaur Media, you can compare the effects of market volatilities on Pfeiffer Vacuum and Centaur Media 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 Pfeiffer Vacuum with a short position of Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfeiffer Vacuum and Centaur Media.
Diversification Opportunities for Pfeiffer Vacuum and Centaur Media
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pfeiffer and Centaur is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Pfeiffer Vacuum Technology and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media and Pfeiffer Vacuum 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 Pfeiffer Vacuum Technology are associated (or correlated) with Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of Pfeiffer Vacuum i.e., Pfeiffer Vacuum and Centaur Media go up and down completely randomly.
Pair Corralation between Pfeiffer Vacuum and Centaur Media
Assuming the 90 days trading horizon Pfeiffer Vacuum is expected to generate 3.28 times less return on investment than Centaur Media. But when comparing it to its historical volatility, Pfeiffer Vacuum Technology is 1.27 times less risky than Centaur Media. It trades about 0.09 of its potential returns per unit of risk. Centaur Media is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,300 in Centaur Media on October 14, 2024 and sell it today you would earn a total of 50.00 from holding Centaur Media or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfeiffer Vacuum Technology vs. Centaur Media
Performance |
| Timeline |
| Pfeiffer Vacuum Tech |
| Centaur Media |
Pfeiffer Vacuum and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfeiffer Vacuum and Centaur Media
The main advantage of trading using opposite Pfeiffer Vacuum and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfeiffer Vacuum position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| Pfeiffer Vacuum vs. Cizzle Biotechnology Holdings | Pfeiffer Vacuum vs. Prosiebensat 1 Media | Pfeiffer Vacuum vs. DXC Technology Co | Pfeiffer Vacuum vs. Oxford Technology 2 |
| Centaur Media vs. Datalogic | Centaur Media vs. EJF Investments | Centaur Media vs. Caledonia Investments | Centaur Media vs. Primorus Investments plc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |