Correlation Between Hubersuhner and Sulzer AG
Can any of the company-specific risk be diversified away by investing in both Hubersuhner and Sulzer AG 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 Sulzer AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hubersuhner AG and Sulzer AG, you can compare the effects of market volatilities on Hubersuhner and Sulzer AG 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 Sulzer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubersuhner and Sulzer AG.
Diversification Opportunities for Hubersuhner and Sulzer AG
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubersuhner and Sulzer is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hubersuhner AG and Sulzer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sulzer 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 Sulzer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sulzer AG has no effect on the direction of Hubersuhner i.e., Hubersuhner and Sulzer AG go up and down completely randomly.
Pair Corralation between Hubersuhner and Sulzer AG
Assuming the 90 days trading horizon Hubersuhner is expected to generate 5.2 times less return on investment than Sulzer AG. But when comparing it to its historical volatility, Hubersuhner AG is 1.07 times less risky than Sulzer AG. It trades about 0.01 of its potential returns per unit of risk. Sulzer AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 11,900 in Sulzer AG on September 2, 2024 and sell it today you would earn a total of 1,380 from holding Sulzer AG or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubersuhner AG vs. Sulzer AG
Performance |
| Timeline |
| Hubersuhner AG |
| Sulzer AG |
Hubersuhner and Sulzer AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubersuhner and Sulzer AG
The main advantage of trading using opposite Hubersuhner and Sulzer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubersuhner position performs unexpectedly, Sulzer AG 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 Sulzer AG will offset losses from the drop in Sulzer AG's long position.| Hubersuhner vs. Inficon Holding | Hubersuhner vs. Belimo Holding | Hubersuhner vs. Interroll Holding AG | Hubersuhner vs. Comet Holding AG |
| Sulzer AG vs. OC Oerlikon Corp | Sulzer AG vs. Helvetia Holding AG | Sulzer AG vs. Swiss Life Holding | Sulzer AG vs. VAT Group AG |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |