Correlation Between Deere and Traton SE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Deere Company and Traton SE, you can compare the effects of market volatilities on Deere and Traton SE 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 Deere with a short position of Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deere and Traton SE.
Diversification Opportunities for Deere and Traton SE
Good diversification
The 3 months correlation between Deere and Traton is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Deere Company and Traton SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traton SE and Deere 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 Deere Company are associated (or correlated) with Traton SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traton SE has no effect on the direction of Deere i.e., Deere and Traton SE go up and down completely randomly.
Pair Corralation between Deere and Traton SE
Assuming the 90 days trading horizon Deere is expected to generate 1.36 times less return on investment than Traton SE. But when comparing it to its historical volatility, Deere Company is 1.36 times less risky than Traton SE. It trades about 0.09 of its potential returns per unit of risk. Traton SE is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,954 in Traton SE on September 2, 2024 and sell it today you would earn a total of 916.00 from holding Traton SE or generate 46.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deere Company vs. Traton SE
Performance |
| Timeline |
| Deere Company |
| Traton SE |
Deere and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deere and Traton SE
The main advantage of trading using opposite Deere and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deere position performs unexpectedly, Traton SE 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 Traton SE will offset losses from the drop in Traton SE's long position.The idea behind Deere Company and Traton SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Traton SE vs. Apollo Medical Holdings | Traton SE vs. CyberArk Software | Traton SE vs. Japan Medical Dynamic | Traton SE vs. Clearside Biomedical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |