Correlation Between Hubersuhner and LandisGyr Group
Can any of the company-specific risk be diversified away by investing in both Hubersuhner 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 Hubersuhner and LandisGyr Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hubersuhner AG and LandisGyr Group AG, you can compare the effects of market volatilities on Hubersuhner 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 Hubersuhner with a short position of LandisGyr Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubersuhner and LandisGyr Group.
Diversification Opportunities for Hubersuhner and LandisGyr Group
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hubersuhner and LandisGyr is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hubersuhner AG 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 Hubersuhner 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 Hubersuhner AG 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 Hubersuhner i.e., Hubersuhner and LandisGyr Group go up and down completely randomly.
Pair Corralation between Hubersuhner and LandisGyr Group
Assuming the 90 days trading horizon Hubersuhner AG is expected to generate 0.17 times more return on investment than LandisGyr Group. However, Hubersuhner AG is 5.81 times less risky than LandisGyr Group. It trades about 0.14 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 7,730 in Hubersuhner AG on November 27, 2024 and sell it today you would earn a total of 200.00 from holding Hubersuhner AG or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubersuhner AG vs. LandisGyr Group AG
Performance |
| Timeline |
| Hubersuhner AG |
| LandisGyr Group AG |
Hubersuhner and LandisGyr Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubersuhner and LandisGyr Group
The main advantage of trading using opposite Hubersuhner and LandisGyr Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubersuhner 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.| Hubersuhner vs. Bucher Industries AG | Hubersuhner vs. Komax Holding AG | Hubersuhner vs. Comet Holding AG | Hubersuhner vs. Burckhardt Compression |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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