Correlation Between Carl Zeiss and Shandong Weigao
Can any of the company-specific risk be diversified away by investing in both Carl Zeiss and Shandong Weigao 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 Carl Zeiss and Shandong Weigao into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carl Zeiss Meditec and Shandong Weigao Group, you can compare the effects of market volatilities on Carl Zeiss and Shandong Weigao 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 Carl Zeiss with a short position of Shandong Weigao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carl Zeiss and Shandong Weigao.
Diversification Opportunities for Carl Zeiss and Shandong Weigao
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carl and Shandong is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Carl Zeiss Meditec and Shandong Weigao Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Weigao Group and Carl Zeiss 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 Carl Zeiss Meditec are associated (or correlated) with Shandong Weigao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Weigao Group has no effect on the direction of Carl Zeiss i.e., Carl Zeiss and Shandong Weigao go up and down completely randomly.
Pair Corralation between Carl Zeiss and Shandong Weigao
If you would invest 96.00 in Shandong Weigao Group on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Shandong Weigao Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Carl Zeiss Meditec vs. Shandong Weigao Group
Performance |
| Timeline |
| Carl Zeiss Meditec |
| Shandong Weigao Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Carl Zeiss and Shandong Weigao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carl Zeiss and Shandong Weigao
The main advantage of trading using opposite Carl Zeiss and Shandong Weigao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carl Zeiss position performs unexpectedly, Shandong Weigao 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 Shandong Weigao will offset losses from the drop in Shandong Weigao's long position.| Carl Zeiss vs. Carl Zeiss Meditec | Carl Zeiss vs. Coloplast AS | Carl Zeiss vs. Straumann Holding AG | Carl Zeiss vs. EssilorLuxottica Socit anonyme |
| Shandong Weigao vs. Coloplast A | Shandong Weigao vs. EssilorLuxottica Socit anonyme | Shandong Weigao vs. Carl Zeiss Meditec | Shandong Weigao vs. Carl Zeiss Meditec |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |