Correlation Between Emmi AG and Also Holding
Can any of the company-specific risk be diversified away by investing in both Emmi AG and Also Holding 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 Emmi AG and Also Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emmi AG and Also Holding AG, you can compare the effects of market volatilities on Emmi AG and Also Holding 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 Emmi AG with a short position of Also Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emmi AG and Also Holding.
Diversification Opportunities for Emmi AG and Also Holding
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emmi and Also is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Emmi AG and Also Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Also Holding AG and Emmi AG 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 Emmi AG are associated (or correlated) with Also Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Also Holding AG has no effect on the direction of Emmi AG i.e., Emmi AG and Also Holding go up and down completely randomly.
Pair Corralation between Emmi AG and Also Holding
Assuming the 90 days trading horizon Emmi AG is expected to under-perform the Also Holding. But the stock apears to be less risky and, when comparing its historical volatility, Emmi AG is 1.61 times less risky than Also Holding. The stock trades about -0.04 of its potential returns per unit of risk. The Also Holding AG is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 24,605 in Also Holding AG on August 25, 2024 and sell it today you would lose (1,805) from holding Also Holding AG or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emmi AG vs. Also Holding AG
Performance |
| Timeline |
| Emmi AG |
| Also Holding AG |
Emmi AG and Also Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emmi AG and Also Holding
The main advantage of trading using opposite Emmi AG and Also Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emmi AG position performs unexpectedly, Also Holding 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 Also Holding will offset losses from the drop in Also Holding's long position.| Emmi AG vs. Bucher Industries AG | Emmi AG vs. EMS CHEMIE HOLDING AG | Emmi AG vs. Barry Callebaut AG | Emmi AG vs. Geberit AG |
| Also Holding vs. Bachem Holding AG | Also Holding vs. Comet Holding AG | Also Holding vs. Interroll Holding AG | Also Holding vs. Siegfried Holding |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| 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 | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |