Correlation Between Airesis SA and Chocoladefabriken
Can any of the company-specific risk be diversified away by investing in both Airesis SA and Chocoladefabriken 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 Airesis SA and Chocoladefabriken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airesis SA and Chocoladefabriken Lindt Spruengli, you can compare the effects of market volatilities on Airesis SA and Chocoladefabriken 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 Airesis SA with a short position of Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airesis SA and Chocoladefabriken.
Diversification Opportunities for Airesis SA and Chocoladefabriken
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Airesis and Chocoladefabriken is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Airesis SA and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt and Airesis SA 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 Airesis SA are associated (or correlated) with Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Airesis SA i.e., Airesis SA and Chocoladefabriken go up and down completely randomly.
Pair Corralation between Airesis SA and Chocoladefabriken
Assuming the 90 days trading horizon Airesis SA is expected to generate 10.11 times more return on investment than Chocoladefabriken. However, Airesis SA is 10.11 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about 0.0 of its potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about 0.02 per unit of risk. If you would invest 54.00 in Airesis SA on August 28, 2024 and sell it today you would lose (48.00) from holding Airesis SA or give up 88.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 83.27% |
| Values | Daily Returns |
Airesis SA vs. Chocoladefabriken Lindt Spruen
Performance |
| Timeline |
| Airesis SA |
| Chocoladefabriken Lindt |
Airesis SA and Chocoladefabriken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airesis SA and Chocoladefabriken
The main advantage of trading using opposite Airesis SA and Chocoladefabriken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airesis SA position performs unexpectedly, Chocoladefabriken 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 Chocoladefabriken will offset losses from the drop in Chocoladefabriken's long position.| Airesis SA vs. Bachem Holding AG | Airesis SA vs. Kudelski | Airesis SA vs. Alpine Select AG | Airesis SA vs. BB Biotech AG |
| Chocoladefabriken vs. Barry Callebaut AG | Chocoladefabriken vs. Givaudan SA | Chocoladefabriken vs. Geberit AG | Chocoladefabriken vs. Straumann 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |