Correlation Between Comet Holding and PolyPeptide Group
Can any of the company-specific risk be diversified away by investing in both Comet Holding and PolyPeptide 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 Comet Holding and PolyPeptide Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comet Holding AG and PolyPeptide Group AG, you can compare the effects of market volatilities on Comet Holding and PolyPeptide 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 Comet Holding with a short position of PolyPeptide Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comet Holding and PolyPeptide Group.
Diversification Opportunities for Comet Holding and PolyPeptide Group
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Comet and PolyPeptide is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Comet Holding AG and PolyPeptide Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PolyPeptide Group and Comet 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 Comet Holding AG are associated (or correlated) with PolyPeptide Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PolyPeptide Group has no effect on the direction of Comet Holding i.e., Comet Holding and PolyPeptide Group go up and down completely randomly.
Pair Corralation between Comet Holding and PolyPeptide Group
Assuming the 90 days trading horizon Comet Holding is expected to generate 2.47 times less return on investment than PolyPeptide Group. But when comparing it to its historical volatility, Comet Holding AG is 1.39 times less risky than PolyPeptide Group. It trades about 0.05 of its potential returns per unit of risk. PolyPeptide Group AG is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,784 in PolyPeptide Group AG on September 2, 2024 and sell it today you would earn a total of 1,111 from holding PolyPeptide Group AG or generate 62.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comet Holding AG vs. PolyPeptide Group AG
Performance |
| Timeline |
| Comet Holding AG |
| PolyPeptide Group |
Comet Holding and PolyPeptide Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comet Holding and PolyPeptide Group
The main advantage of trading using opposite Comet Holding and PolyPeptide Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comet Holding position performs unexpectedly, PolyPeptide 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 PolyPeptide Group will offset losses from the drop in PolyPeptide Group's long position.| Comet Holding vs. VAT Group AG | Comet Holding vs. Bachem Holding AG | Comet Holding vs. Inficon Holding | Comet Holding vs. Tecan Group AG |
| PolyPeptide Group vs. Bachem Holding AG | PolyPeptide Group vs. Siegfried Holding | PolyPeptide Group vs. VAT Group AG | PolyPeptide Group vs. Comet 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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