Correlation Between VITEC SOFTWARE and Traton SE
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By analyzing existing cross correlation between VITEC SOFTWARE GROUP and Traton SE, you can compare the effects of market volatilities on VITEC SOFTWARE and Traton SE 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 VITEC SOFTWARE with a short position of Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of VITEC SOFTWARE and Traton SE.
Diversification Opportunities for VITEC SOFTWARE and Traton SE
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between VITEC and Traton is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding VITEC SOFTWARE GROUP and Traton SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traton SE and VITEC SOFTWARE 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 VITEC SOFTWARE GROUP are associated (or correlated) with Traton SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traton SE has no effect on the direction of VITEC SOFTWARE i.e., VITEC SOFTWARE and Traton SE go up and down completely randomly.
Pair Corralation between VITEC SOFTWARE and Traton SE
Assuming the 90 days horizon VITEC SOFTWARE GROUP is expected to generate 1.1 times more return on investment than Traton SE. However, VITEC SOFTWARE is 1.1 times more volatile than Traton SE. It trades about 0.23 of its potential returns per unit of risk. Traton SE is currently generating about 0.03 per unit of risk. If you would invest 4,070 in VITEC SOFTWARE GROUP on September 14, 2024 and sell it today you would earn a total of 390.00 from holding VITEC SOFTWARE GROUP or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VITEC SOFTWARE GROUP vs. Traton SE
Performance |
| Timeline |
| VITEC SOFTWARE GROUP |
| Traton SE |
VITEC SOFTWARE and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VITEC SOFTWARE and Traton SE
The main advantage of trading using opposite VITEC SOFTWARE and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VITEC SOFTWARE position performs unexpectedly, Traton SE 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 Traton SE will offset losses from the drop in Traton SE's long position.| VITEC SOFTWARE vs. KENEDIX OFFICE INV | VITEC SOFTWARE vs. CDN IMPERIAL BANK | VITEC SOFTWARE vs. The Hanover Insurance | VITEC SOFTWARE vs. ALIOR BANK |
| Traton SE vs. TOREX SEMICONDUCTOR LTD | Traton SE vs. Apollo Medical Holdings | Traton SE vs. MagnaChip Semiconductor Corp | Traton SE vs. Microbot Medical |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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