Correlation Between Adecco Group and Schlatter Industries
Can any of the company-specific risk be diversified away by investing in both Adecco Group and Schlatter Industries 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 Adecco Group and Schlatter Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adecco Group AG and Schlatter Industries AG, you can compare the effects of market volatilities on Adecco Group and Schlatter Industries 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 Adecco Group with a short position of Schlatter Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adecco Group and Schlatter Industries.
Diversification Opportunities for Adecco Group and Schlatter Industries
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Adecco and Schlatter is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Adecco Group AG and Schlatter Industries AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schlatter Industries and Adecco Group 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 Adecco Group AG are associated (or correlated) with Schlatter Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schlatter Industries has no effect on the direction of Adecco Group i.e., Adecco Group and Schlatter Industries go up and down completely randomly.
Pair Corralation between Adecco Group and Schlatter Industries
Assuming the 90 days trading horizon Adecco Group AG is expected to under-perform the Schlatter Industries. But the stock apears to be less risky and, when comparing its historical volatility, Adecco Group AG is 2.23 times less risky than Schlatter Industries. The stock trades about -0.05 of its potential returns per unit of risk. The Schlatter Industries AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,464 in Schlatter Industries AG on September 12, 2024 and sell it today you would lose (164.00) from holding Schlatter Industries AG or give up 6.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.3% |
| Values | Daily Returns |
Adecco Group AG vs. Schlatter Industries AG
Performance |
| Timeline |
| Adecco Group AG |
| Schlatter Industries |
Adecco Group and Schlatter Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adecco Group and Schlatter Industries
The main advantage of trading using opposite Adecco Group and Schlatter Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adecco Group position performs unexpectedly, Schlatter Industries 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 Schlatter Industries will offset losses from the drop in Schlatter Industries' long position.| Adecco Group vs. Swisscom AG | Adecco Group vs. Swiss Life Holding | Adecco Group vs. Swiss Re AG | Adecco Group vs. ABB |
| Schlatter Industries vs. Sulzer AG | Schlatter Industries vs. Helvetia Holding AG | Schlatter Industries vs. Swiss Life Holding | Schlatter Industries vs. Adecco Group AG |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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