Correlation Between Adval Tech and Graubuendner Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Adval Tech and Graubuendner Kantonalbank 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 Adval Tech and Graubuendner Kantonalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adval Tech Holding and Graubuendner Kantonalbank, you can compare the effects of market volatilities on Adval Tech and Graubuendner Kantonalbank 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 Adval Tech with a short position of Graubuendner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adval Tech and Graubuendner Kantonalbank.
Diversification Opportunities for Adval Tech and Graubuendner Kantonalbank
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Adval and Graubuendner is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Adval Tech Holding and Graubuendner Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graubuendner Kantonalbank and Adval Tech 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 Adval Tech Holding are associated (or correlated) with Graubuendner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graubuendner Kantonalbank has no effect on the direction of Adval Tech i.e., Adval Tech and Graubuendner Kantonalbank go up and down completely randomly.
Pair Corralation between Adval Tech and Graubuendner Kantonalbank
Assuming the 90 days trading horizon Adval Tech Holding is expected to under-perform the Graubuendner Kantonalbank. In addition to that, Adval Tech is 8.81 times more volatile than Graubuendner Kantonalbank. It trades about -0.14 of its total potential returns per unit of risk. Graubuendner Kantonalbank is currently generating about 0.16 per unit of volatility. If you would invest 174,000 in Graubuendner Kantonalbank on October 26, 2024 and sell it today you would earn a total of 2,500 from holding Graubuendner Kantonalbank or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.25% |
| Values | Daily Returns |
Adval Tech Holding vs. Graubuendner Kantonalbank
Performance |
| Timeline |
| Adval Tech Holding |
| Graubuendner Kantonalbank |
Adval Tech and Graubuendner Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adval Tech and Graubuendner Kantonalbank
The main advantage of trading using opposite Adval Tech and Graubuendner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adval Tech position performs unexpectedly, Graubuendner Kantonalbank 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 Graubuendner Kantonalbank will offset losses from the drop in Graubuendner Kantonalbank's long position.| Adval Tech vs. Feintool International Holding | Adval Tech vs. Also Holding AG | Adval Tech vs. Allreal Holding | Adval Tech vs. Forbo Holding 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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