Correlation Between Gurit Holding and Givaudan
Can any of the company-specific risk be diversified away by investing in both Gurit Holding and Givaudan 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 Gurit Holding and Givaudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gurit Holding AG and Givaudan SA, you can compare the effects of market volatilities on Gurit Holding and Givaudan 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 Gurit Holding with a short position of Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gurit Holding and Givaudan.
Diversification Opportunities for Gurit Holding and Givaudan
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gurit and Givaudan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gurit Holding AG and Givaudan SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA and Gurit Holding 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 Gurit Holding AG are associated (or correlated) with Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA has no effect on the direction of Gurit Holding i.e., Gurit Holding and Givaudan go up and down completely randomly.
Pair Corralation between Gurit Holding and Givaudan
Assuming the 90 days trading horizon Gurit Holding AG is expected to under-perform the Givaudan. In addition to that, Gurit Holding is 3.41 times more volatile than Givaudan SA. It trades about -0.78 of its total potential returns per unit of risk. Givaudan SA is currently generating about -0.27 per unit of volatility. If you would invest 419,300 in Givaudan SA on August 28, 2024 and sell it today you would lose (29,200) from holding Givaudan SA or give up 6.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gurit Holding AG vs. Givaudan SA
Performance |
| Timeline |
| Gurit Holding AG |
| Givaudan SA |
Gurit Holding and Givaudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gurit Holding and Givaudan
The main advantage of trading using opposite Gurit Holding and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gurit Holding position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.| Gurit Holding vs. Schweiter Technologies AG | Gurit Holding vs. Clariant AG | Gurit Holding vs. Interroll Holding AG | Gurit Holding vs. VAT Group AG |
| Givaudan vs. Geberit AG | Givaudan vs. Lonza Group AG | Givaudan vs. SGS SA | Givaudan vs. Swiss Life 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |