Correlation Between Comet Holding and SFS Group
Can any of the company-specific risk be diversified away by investing in both Comet Holding and SFS 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 SFS 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 SFS Group AG, you can compare the effects of market volatilities on Comet Holding and SFS 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 SFS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comet Holding and SFS Group.
Diversification Opportunities for Comet Holding and SFS Group
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Comet and SFS is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Comet Holding AG and SFS Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFS Group AG 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 SFS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFS Group AG has no effect on the direction of Comet Holding i.e., Comet Holding and SFS Group go up and down completely randomly.
Pair Corralation between Comet Holding and SFS Group
Assuming the 90 days trading horizon Comet Holding AG is expected to generate 1.54 times more return on investment than SFS Group. However, Comet Holding is 1.54 times more volatile than SFS Group AG. It trades about -0.2 of its potential returns per unit of risk. SFS Group AG is currently generating about -0.33 per unit of risk. If you would invest 24,123 in Comet Holding AG on January 18, 2025 and sell it today you would lose (3,623) from holding Comet Holding AG or give up 15.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comet Holding AG vs. SFS Group AG
Performance |
| Timeline |
| Comet Holding AG |
| SFS Group AG |
Comet Holding and SFS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comet Holding and SFS Group
The main advantage of trading using opposite Comet Holding and SFS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comet Holding position performs unexpectedly, SFS 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 SFS Group will offset losses from the drop in SFS 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 |
| SFS Group vs. VAT Group AG | SFS Group vs. Bucher Industries AG | SFS Group vs. Comet Holding AG | SFS Group vs. Daetwyl I |
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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