Correlation Between Belimo Holding and Vontobel Holding
Can any of the company-specific risk be diversified away by investing in both Belimo Holding and Vontobel Holding 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 Belimo Holding and Vontobel Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belimo Holding and Vontobel Holding, you can compare the effects of market volatilities on Belimo Holding and Vontobel Holding 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 Belimo Holding with a short position of Vontobel Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belimo Holding and Vontobel Holding.
Diversification Opportunities for Belimo Holding and Vontobel Holding
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Belimo and Vontobel is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Belimo Holding and Vontobel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontobel Holding and Belimo 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 Belimo Holding are associated (or correlated) with Vontobel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontobel Holding has no effect on the direction of Belimo Holding i.e., Belimo Holding and Vontobel Holding go up and down completely randomly.
Pair Corralation between Belimo Holding and Vontobel Holding
Assuming the 90 days trading horizon Belimo Holding is expected to generate 1.5 times more return on investment than Vontobel Holding. However, Belimo Holding is 1.5 times more volatile than Vontobel Holding. It trades about 0.06 of its potential returns per unit of risk. Vontobel Holding is currently generating about 0.02 per unit of risk. If you would invest 42,859 in Belimo Holding on August 31, 2024 and sell it today you would earn a total of 15,541 from holding Belimo Holding or generate 36.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Belimo Holding vs. Vontobel Holding
Performance |
| Timeline |
| Belimo Holding |
| Vontobel Holding |
Belimo Holding and Vontobel Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belimo Holding and Vontobel Holding
The main advantage of trading using opposite Belimo Holding and Vontobel Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belimo Holding position performs unexpectedly, Vontobel Holding 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 Vontobel Holding will offset losses from the drop in Vontobel Holding's long position.| Belimo Holding vs. EMS CHEMIE HOLDING AG | Belimo Holding vs. Geberit AG | Belimo Holding vs. VAT Group AG | Belimo Holding vs. Interroll Holding AG |
| Vontobel Holding vs. Cembra Money Bank | Vontobel Holding vs. OC Oerlikon Corp | Vontobel Holding vs. Helvetia Holding AG | Vontobel Holding vs. mobilezone 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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