Correlation Between Bossard Holding and Schweiter Technologies
Can any of the company-specific risk be diversified away by investing in both Bossard Holding and Schweiter Technologies 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 Bossard Holding and Schweiter Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bossard Holding AG and Schweiter Technologies AG, you can compare the effects of market volatilities on Bossard Holding and Schweiter Technologies 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 Bossard Holding with a short position of Schweiter Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bossard Holding and Schweiter Technologies.
Diversification Opportunities for Bossard Holding and Schweiter Technologies
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bossard and Schweiter is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bossard Holding AG and Schweiter Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweiter Technologies and Bossard 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 Bossard Holding AG are associated (or correlated) with Schweiter Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweiter Technologies has no effect on the direction of Bossard Holding i.e., Bossard Holding and Schweiter Technologies go up and down completely randomly.
Pair Corralation between Bossard Holding and Schweiter Technologies
Assuming the 90 days trading horizon Bossard Holding AG is expected to under-perform the Schweiter Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Bossard Holding AG is 2.41 times less risky than Schweiter Technologies. The stock trades about -0.26 of its potential returns per unit of risk. The Schweiter Technologies AG is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 40,550 in Schweiter Technologies AG on August 30, 2024 and sell it today you would lose (150.00) from holding Schweiter Technologies AG or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bossard Holding AG vs. Schweiter Technologies AG
Performance |
| Timeline |
| Bossard Holding AG |
| Schweiter Technologies |
Bossard Holding and Schweiter Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bossard Holding and Schweiter Technologies
The main advantage of trading using opposite Bossard Holding and Schweiter Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bossard Holding position performs unexpectedly, Schweiter Technologies 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 Schweiter Technologies will offset losses from the drop in Schweiter Technologies' long position.| Bossard Holding vs. VAT Group AG | Bossard Holding vs. Bucher Industries AG | Bossard Holding vs. EMS CHEMIE HOLDING AG | Bossard Holding vs. Komax Holding AG |
| Schweiter Technologies vs. Inficon Holding | Schweiter Technologies vs. Bucher Industries AG | Schweiter Technologies vs. Sulzer AG | Schweiter Technologies vs. Interroll 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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