Correlation Between SQUIRREL MEDIA and Heidelberg Materials
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and Heidelberg Materials 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 SQUIRREL MEDIA and Heidelberg Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and Heidelberg Materials AG, you can compare the effects of market volatilities on SQUIRREL MEDIA and Heidelberg Materials 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 SQUIRREL MEDIA with a short position of Heidelberg Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and Heidelberg Materials.
Diversification Opportunities for SQUIRREL MEDIA and Heidelberg Materials
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between SQUIRREL and Heidelberg is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and Heidelberg Materials AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heidelberg Materials and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with Heidelberg Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heidelberg Materials has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and Heidelberg Materials go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and Heidelberg Materials
Assuming the 90 days horizon SQUIRREL MEDIA is expected to generate 15.9 times less return on investment than Heidelberg Materials. In addition to that, SQUIRREL MEDIA is 1.23 times more volatile than Heidelberg Materials AG. It trades about 0.02 of its total potential returns per unit of risk. Heidelberg Materials AG is currently generating about 0.31 per unit of volatility. If you would invest 10,000 in Heidelberg Materials AG on October 27, 2024 and sell it today you would earn a total of 3,455 from holding Heidelberg Materials AG or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. Heidelberg Materials AG
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| Heidelberg Materials |
SQUIRREL MEDIA and Heidelberg Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and Heidelberg Materials
The main advantage of trading using opposite SQUIRREL MEDIA and Heidelberg Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, Heidelberg Materials 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 Heidelberg Materials will offset losses from the drop in Heidelberg Materials' long position.| SQUIRREL MEDIA vs. Acadia Healthcare | SQUIRREL MEDIA vs. Grand Canyon Education | SQUIRREL MEDIA vs. EMBARK EDUCATION LTD | SQUIRREL MEDIA vs. CLOVER HEALTH INV |
| Heidelberg Materials vs. COSTCO WHOLESALE CDR | Heidelberg Materials vs. ZhongAn Online P | Heidelberg Materials vs. SALESFORCE INC CDR | Heidelberg Materials vs. MARKET VECTR RETAIL |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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