Correlation Between Autoneum Holding and Procimmo Real
Can any of the company-specific risk be diversified away by investing in both Autoneum Holding and Procimmo Real 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 Autoneum Holding and Procimmo Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autoneum Holding AG and Procimmo Real Estate, you can compare the effects of market volatilities on Autoneum Holding and Procimmo Real 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 Autoneum Holding with a short position of Procimmo Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoneum Holding and Procimmo Real.
Diversification Opportunities for Autoneum Holding and Procimmo Real
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autoneum and Procimmo is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Autoneum Holding AG and Procimmo Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procimmo Real Estate and Autoneum 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 Autoneum Holding AG are associated (or correlated) with Procimmo Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procimmo Real Estate has no effect on the direction of Autoneum Holding i.e., Autoneum Holding and Procimmo Real go up and down completely randomly.
Pair Corralation between Autoneum Holding and Procimmo Real
Assuming the 90 days trading horizon Autoneum Holding AG is expected to generate 1.56 times more return on investment than Procimmo Real. However, Autoneum Holding is 1.56 times more volatile than Procimmo Real Estate. It trades about 0.24 of its potential returns per unit of risk. Procimmo Real Estate is currently generating about 0.13 per unit of risk. If you would invest 10,760 in Autoneum Holding AG on November 6, 2024 and sell it today you would earn a total of 1,980 from holding Autoneum Holding AG or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.31% |
| Values | Daily Returns |
Autoneum Holding AG vs. Procimmo Real Estate
Performance |
| Timeline |
| Autoneum Holding |
| Procimmo Real Estate |
Autoneum Holding and Procimmo Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autoneum Holding and Procimmo Real
The main advantage of trading using opposite Autoneum Holding and Procimmo Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoneum Holding position performs unexpectedly, Procimmo Real 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 Procimmo Real will offset losses from the drop in Procimmo Real's long position.| Autoneum Holding vs. Rieter Holding AG | Autoneum Holding vs. Comet Holding AG | Autoneum Holding vs. VAT Group AG | Autoneum Holding vs. Bossard Holding AG |
| Procimmo Real vs. SPDR Dow Jones | Procimmo Real vs. Baloise Holding AG | Procimmo Real vs. Autoneum Holding AG | Procimmo Real vs. SPDR FTSE UK |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |