Correlation Between Coor Service and St Galler
Can any of the company-specific risk be diversified away by investing in both Coor Service and St Galler 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 Coor Service and St Galler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and St Galler Kantonalbank, you can compare the effects of market volatilities on Coor Service and St Galler 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 Coor Service with a short position of St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and St Galler.
Diversification Opportunities for Coor Service and St Galler
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coor and 0QQZ is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank and Coor Service 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 Coor Service Management are associated (or correlated) with St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of Coor Service i.e., Coor Service and St Galler go up and down completely randomly.
Pair Corralation between Coor Service and St Galler
Assuming the 90 days trading horizon Coor Service Management is expected to under-perform the St Galler. In addition to that, Coor Service is 2.73 times more volatile than St Galler Kantonalbank. It trades about -0.04 of its total potential returns per unit of risk. St Galler Kantonalbank is currently generating about -0.1 per unit of volatility. If you would invest 49,537 in St Galler Kantonalbank on September 1, 2024 and sell it today you would lose (7,087) from holding St Galler Kantonalbank or give up 14.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
Coor Service Management vs. St Galler Kantonalbank
Performance |
| Timeline |
| Coor Service Management |
| St Galler Kantonalbank |
Coor Service and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and St Galler
The main advantage of trading using opposite Coor Service and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler's long position.| Coor Service vs. Uniper SE | Coor Service vs. Mulberry Group PLC | Coor Service vs. London Security Plc | Coor Service vs. Triad Group PLC |
| St Galler vs. Uniper SE | St Galler vs. Mulberry Group PLC | St Galler vs. London Security Plc | St Galler vs. Triad Group 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |