Correlation Between Also Holding and Groupe Minoteries
Can any of the company-specific risk be diversified away by investing in both Also Holding and Groupe Minoteries 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 Also Holding and Groupe Minoteries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Also Holding AG and Groupe Minoteries SA, you can compare the effects of market volatilities on Also Holding and Groupe Minoteries 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 Also Holding with a short position of Groupe Minoteries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Also Holding and Groupe Minoteries.
Diversification Opportunities for Also Holding and Groupe Minoteries
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Also and Groupe is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Also Holding AG and Groupe Minoteries SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Minoteries and Also Holding 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 Also Holding AG are associated (or correlated) with Groupe Minoteries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Minoteries has no effect on the direction of Also Holding i.e., Also Holding and Groupe Minoteries go up and down completely randomly.
Pair Corralation between Also Holding and Groupe Minoteries
Assuming the 90 days trading horizon Also Holding AG is expected to generate 0.92 times more return on investment than Groupe Minoteries. However, Also Holding AG is 1.09 times less risky than Groupe Minoteries. It trades about 0.0 of its potential returns per unit of risk. Groupe Minoteries SA is currently generating about -0.01 per unit of risk. If you would invest 24,115 in Also Holding AG on September 3, 2024 and sell it today you would lose (615.00) from holding Also Holding AG or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.28% |
| Values | Daily Returns |
Also Holding AG vs. Groupe Minoteries SA
Performance |
| Timeline |
| Also Holding AG |
| Groupe Minoteries |
Also Holding and Groupe Minoteries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Also Holding and Groupe Minoteries
The main advantage of trading using opposite Also Holding and Groupe Minoteries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Also Holding position performs unexpectedly, Groupe Minoteries 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 Groupe Minoteries will offset losses from the drop in Groupe Minoteries' long position.| Also Holding vs. Bachem Holding AG | Also Holding vs. Comet Holding AG | Also Holding vs. Interroll Holding AG | Also Holding vs. Siegfried Holding |
| Groupe Minoteries vs. Carlo Gavazzi Holding | Groupe Minoteries vs. Emmi AG | Groupe Minoteries vs. Cicor Technologies | Groupe Minoteries vs. Lem Holding SA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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