Correlation Between Coltene Holding and Jungfraubahn Holding
Can any of the company-specific risk be diversified away by investing in both Coltene Holding and Jungfraubahn 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 Coltene Holding and Jungfraubahn Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coltene Holding AG and Jungfraubahn Holding AG, you can compare the effects of market volatilities on Coltene Holding and Jungfraubahn 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 Coltene Holding with a short position of Jungfraubahn Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coltene Holding and Jungfraubahn Holding.
Diversification Opportunities for Coltene Holding and Jungfraubahn Holding
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coltene and Jungfraubahn is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Coltene Holding AG and Jungfraubahn Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jungfraubahn Holding and Coltene 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 Coltene Holding AG are associated (or correlated) with Jungfraubahn Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jungfraubahn Holding has no effect on the direction of Coltene Holding i.e., Coltene Holding and Jungfraubahn Holding go up and down completely randomly.
Pair Corralation between Coltene Holding and Jungfraubahn Holding
Assuming the 90 days trading horizon Coltene Holding AG is expected to generate 1.65 times more return on investment than Jungfraubahn Holding. However, Coltene Holding is 1.65 times more volatile than Jungfraubahn Holding AG. It trades about 0.0 of its potential returns per unit of risk. Jungfraubahn Holding AG is currently generating about -0.09 per unit of risk. If you would invest 5,160 in Coltene Holding AG on August 31, 2024 and sell it today you would lose (170.00) from holding Coltene Holding AG or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coltene Holding AG vs. Jungfraubahn Holding AG
Performance |
| Timeline |
| Coltene Holding AG |
| Jungfraubahn Holding |
Coltene Holding and Jungfraubahn Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coltene Holding and Jungfraubahn Holding
The main advantage of trading using opposite Coltene Holding and Jungfraubahn Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coltene Holding position performs unexpectedly, Jungfraubahn 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 Jungfraubahn Holding will offset losses from the drop in Jungfraubahn Holding's long position.| Coltene Holding vs. Jungfraubahn Holding AG | Coltene Holding vs. Amsterdam Commodities NV | Coltene Holding vs. Flow Traders BV | Coltene Holding vs. ForFarmers NV |
| Jungfraubahn Holding vs. Emmi AG | Jungfraubahn Holding vs. Flughafen Zurich | Jungfraubahn Holding vs. Bergbahnen Engelberg Truebsee | Jungfraubahn Holding vs. EMS CHEMIE 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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