Correlation Between Interroll Holding and Hubersuhner
Can any of the company-specific risk be diversified away by investing in both Interroll Holding and Hubersuhner 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 Interroll Holding and Hubersuhner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interroll Holding AG and Hubersuhner AG, you can compare the effects of market volatilities on Interroll Holding and Hubersuhner 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 Interroll Holding with a short position of Hubersuhner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interroll Holding and Hubersuhner.
Diversification Opportunities for Interroll Holding and Hubersuhner
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Interroll and Hubersuhner is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Interroll Holding AG and Hubersuhner AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubersuhner AG and Interroll 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 Interroll Holding AG are associated (or correlated) with Hubersuhner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubersuhner AG has no effect on the direction of Interroll Holding i.e., Interroll Holding and Hubersuhner go up and down completely randomly.
Pair Corralation between Interroll Holding and Hubersuhner
Assuming the 90 days trading horizon Interroll Holding AG is expected to generate 1.42 times more return on investment than Hubersuhner. However, Interroll Holding is 1.42 times more volatile than Hubersuhner AG. It trades about 0.01 of its potential returns per unit of risk. Hubersuhner AG is currently generating about -0.01 per unit of risk. If you would invest 223,741 in Interroll Holding AG on September 2, 2024 and sell it today you would lose (6,241) from holding Interroll Holding AG or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interroll Holding AG vs. Hubersuhner AG
Performance |
| Timeline |
| Interroll Holding |
| Hubersuhner AG |
Interroll Holding and Hubersuhner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interroll Holding and Hubersuhner
The main advantage of trading using opposite Interroll Holding and Hubersuhner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interroll Holding position performs unexpectedly, Hubersuhner 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 Hubersuhner will offset losses from the drop in Hubersuhner's long position.| Interroll Holding vs. OC Oerlikon Corp | Interroll Holding vs. Helvetia Holding AG | Interroll Holding vs. Swiss Life Holding | Interroll Holding vs. VAT Group AG |
| Hubersuhner vs. Inficon Holding | Hubersuhner vs. Belimo Holding | Hubersuhner vs. Interroll Holding AG | Hubersuhner vs. Comet Holding 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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