Correlation Between Coor Service and GEA GROUP
Can any of the company-specific risk be diversified away by investing in both Coor Service and GEA GROUP 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 Coor Service and GEA GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and GEA GROUP, you can compare the effects of market volatilities on Coor Service and GEA GROUP 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 Coor Service with a short position of GEA GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and GEA GROUP.
Diversification Opportunities for Coor Service and GEA GROUP
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coor and GEA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and GEA GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEA GROUP and Coor Service 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 Coor Service Management are associated (or correlated) with GEA GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEA GROUP has no effect on the direction of Coor Service i.e., Coor Service and GEA GROUP go up and down completely randomly.
Pair Corralation between Coor Service and GEA GROUP
Assuming the 90 days horizon Coor Service Management is expected to under-perform the GEA GROUP. In addition to that, Coor Service is 2.29 times more volatile than GEA GROUP. It trades about -0.26 of its total potential returns per unit of risk. GEA GROUP is currently generating about 0.21 per unit of volatility. If you would invest 4,548 in GEA GROUP on September 4, 2024 and sell it today you would earn a total of 186.00 from holding GEA GROUP or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Coor Service Management vs. GEA GROUP
Performance |
| Timeline |
| Coor Service Management |
| GEA GROUP |
Coor Service and GEA GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and GEA GROUP
The main advantage of trading using opposite Coor Service and GEA GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service position performs unexpectedly, GEA GROUP 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 GEA GROUP will offset losses from the drop in GEA GROUP's long position.| Coor Service vs. Transport International Holdings | Coor Service vs. MUTUIONLINE | Coor Service vs. Kaufman Broad SA | Coor Service vs. Lamar Advertising |
| GEA GROUP vs. SIEMENS AG SP | GEA GROUP vs. Siemens Aktiengesellschaft | GEA GROUP vs. Siemens Aktiengesellschaft | GEA GROUP vs. Atlas Copco A |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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