Correlation Between CeoTronics and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both CeoTronics and SYSTEMAIR 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 CeoTronics and SYSTEMAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CeoTronics AG and SYSTEMAIR AB, you can compare the effects of market volatilities on CeoTronics and SYSTEMAIR 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 CeoTronics with a short position of SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CeoTronics and SYSTEMAIR.
Diversification Opportunities for CeoTronics and SYSTEMAIR
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CeoTronics and SYSTEMAIR is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding CeoTronics AG and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB and CeoTronics 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 CeoTronics AG are associated (or correlated) with SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of CeoTronics i.e., CeoTronics and SYSTEMAIR go up and down completely randomly.
Pair Corralation between CeoTronics and SYSTEMAIR
Assuming the 90 days trading horizon CeoTronics AG is expected to under-perform the SYSTEMAIR. But the stock apears to be less risky and, when comparing its historical volatility, CeoTronics AG is 1.17 times less risky than SYSTEMAIR. The stock trades about 0.0 of its potential returns per unit of risk. The SYSTEMAIR AB is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 531.00 in SYSTEMAIR AB on September 3, 2024 and sell it today you would earn a total of 251.00 from holding SYSTEMAIR AB or generate 47.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CeoTronics AG vs. SYSTEMAIR AB
Performance |
| Timeline |
| CeoTronics AG |
| SYSTEMAIR AB |
CeoTronics and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CeoTronics and SYSTEMAIR
The main advantage of trading using opposite CeoTronics and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CeoTronics position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| CeoTronics vs. 24SEVENOFFICE GROUP AB | CeoTronics vs. AUSTEVOLL SEAFOOD | CeoTronics vs. Lery Seafood Group | CeoTronics vs. Mobilezone Holding AG |
| SYSTEMAIR vs. SAFETY MEDICAL PROD | SYSTEMAIR vs. THORNEY TECHS LTD | SYSTEMAIR vs. RCM TECHNOLOGIES | SYSTEMAIR vs. Microbot Medical |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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