Correlation Between Carlo Gavazzi and Hubersuhner
Can any of the company-specific risk be diversified away by investing in both Carlo Gavazzi and Hubersuhner 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 Carlo Gavazzi and Hubersuhner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlo Gavazzi Holding and Hubersuhner AG, you can compare the effects of market volatilities on Carlo Gavazzi and Hubersuhner 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 Carlo Gavazzi with a short position of Hubersuhner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlo Gavazzi and Hubersuhner.
Diversification Opportunities for Carlo Gavazzi and Hubersuhner
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlo and Hubersuhner is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Carlo Gavazzi Holding and Hubersuhner AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubersuhner AG and Carlo Gavazzi 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 Carlo Gavazzi Holding are associated (or correlated) with Hubersuhner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubersuhner AG has no effect on the direction of Carlo Gavazzi i.e., Carlo Gavazzi and Hubersuhner go up and down completely randomly.
Pair Corralation between Carlo Gavazzi and Hubersuhner
Assuming the 90 days trading horizon Carlo Gavazzi Holding is expected to under-perform the Hubersuhner. In addition to that, Carlo Gavazzi is 1.46 times more volatile than Hubersuhner AG. It trades about -0.05 of its total potential returns per unit of risk. Hubersuhner AG is currently generating about 0.05 per unit of volatility. If you would invest 6,290 in Hubersuhner AG on August 29, 2024 and sell it today you would earn a total of 1,160 from holding Hubersuhner AG or generate 18.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Carlo Gavazzi Holding vs. Hubersuhner AG
Performance |
| Timeline |
| Carlo Gavazzi Holding |
| Hubersuhner AG |
Carlo Gavazzi and Hubersuhner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlo Gavazzi and Hubersuhner
The main advantage of trading using opposite Carlo Gavazzi and Hubersuhner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlo Gavazzi position performs unexpectedly, Hubersuhner 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 Hubersuhner will offset losses from the drop in Hubersuhner's long position.| Carlo Gavazzi vs. Bucher Industries AG | Carlo Gavazzi vs. Burkhalter Holding AG | Carlo Gavazzi vs. mobilezone ag | Carlo Gavazzi vs. Also Holding AG |
| Hubersuhner vs. Bucher Industries AG | Hubersuhner vs. Komax Holding AG | Hubersuhner vs. Comet Holding AG | Hubersuhner vs. Burckhardt Compression |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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