Correlation Between Groupe Minoteries and Also Holding
Can any of the company-specific risk be diversified away by investing in both Groupe Minoteries 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 Groupe Minoteries and Also Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Minoteries SA and Also Holding AG, you can compare the effects of market volatilities on Groupe Minoteries 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 Groupe Minoteries with a short position of Also Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Minoteries and Also Holding.
Diversification Opportunities for Groupe Minoteries and Also Holding
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Groupe and Also is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Minoteries SA 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 Groupe Minoteries 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 Groupe Minoteries SA 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 Groupe Minoteries i.e., Groupe Minoteries and Also Holding go up and down completely randomly.
Pair Corralation between Groupe Minoteries and Also Holding
Assuming the 90 days trading horizon Groupe Minoteries SA is expected to under-perform the Also Holding. In addition to that, Groupe Minoteries is 1.09 times more volatile than Also Holding AG. It trades about -0.01 of its total potential returns per unit of risk. Also Holding AG is currently generating about 0.0 per unit of volatility. If you would invest 24,115 in Also Holding AG on September 3, 2024 and sell it today you would lose (615.00) from holding Also Holding AG or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.28% |
| Values | Daily Returns |
Groupe Minoteries SA vs. Also Holding AG
Performance |
| Timeline |
| Groupe Minoteries |
| Also Holding AG |
Groupe Minoteries and Also Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Minoteries and Also Holding
The main advantage of trading using opposite Groupe Minoteries and Also Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Minoteries 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.| Groupe Minoteries vs. Carlo Gavazzi Holding | Groupe Minoteries vs. Emmi AG | Groupe Minoteries vs. Cicor Technologies | Groupe Minoteries vs. Lem Holding SA |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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