Correlation Between Carlo Gavazzi and LandisGyr Group
Can any of the company-specific risk be diversified away by investing in both Carlo Gavazzi and LandisGyr 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 Carlo Gavazzi and LandisGyr Group 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 LandisGyr Group AG, you can compare the effects of market volatilities on Carlo Gavazzi and LandisGyr 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 Carlo Gavazzi with a short position of LandisGyr Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlo Gavazzi and LandisGyr Group.
Diversification Opportunities for Carlo Gavazzi and LandisGyr Group
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlo and LandisGyr is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Carlo Gavazzi Holding and LandisGyr Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LandisGyr Group 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 LandisGyr Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LandisGyr Group AG has no effect on the direction of Carlo Gavazzi i.e., Carlo Gavazzi and LandisGyr Group go up and down completely randomly.
Pair Corralation between Carlo Gavazzi and LandisGyr Group
Assuming the 90 days trading horizon Carlo Gavazzi Holding is expected to generate 0.38 times more return on investment than LandisGyr Group. However, Carlo Gavazzi Holding is 2.61 times less risky than LandisGyr Group. It trades about 0.39 of its potential returns per unit of risk. LandisGyr Group AG is currently generating about -0.17 per unit of risk. If you would invest 18,550 in Carlo Gavazzi Holding on November 27, 2024 and sell it today you would earn a total of 3,150 from holding Carlo Gavazzi Holding or generate 16.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlo Gavazzi Holding vs. LandisGyr Group AG
Performance |
| Timeline |
| Carlo Gavazzi Holding |
| LandisGyr Group AG |
Carlo Gavazzi and LandisGyr Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlo Gavazzi and LandisGyr Group
The main advantage of trading using opposite Carlo Gavazzi and LandisGyr Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlo Gavazzi position performs unexpectedly, LandisGyr 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 LandisGyr Group will offset losses from the drop in LandisGyr Group'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 |
| LandisGyr Group vs. Basellandschaftliche Kantonalbank | LandisGyr Group vs. Basler Kantonalbank | LandisGyr Group vs. Softwareone Holding | LandisGyr Group vs. Thurgauer Kantonalbank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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