Correlation Between Interroll Holding and Orell Fuessli
Can any of the company-specific risk be diversified away by investing in both Interroll Holding and Orell Fuessli 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 Orell Fuessli 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 Orell Fuessli Holding, you can compare the effects of market volatilities on Interroll Holding and Orell Fuessli 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 Orell Fuessli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interroll Holding and Orell Fuessli.
Diversification Opportunities for Interroll Holding and Orell Fuessli
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Interroll and Orell is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Interroll Holding AG and Orell Fuessli Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orell Fuessli Holding 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 Orell Fuessli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orell Fuessli Holding has no effect on the direction of Interroll Holding i.e., Interroll Holding and Orell Fuessli go up and down completely randomly.
Pair Corralation between Interroll Holding and Orell Fuessli
Assuming the 90 days trading horizon Interroll Holding is expected to generate 1.36 times less return on investment than Orell Fuessli. In addition to that, Interroll Holding is 1.83 times more volatile than Orell Fuessli Holding. It trades about 0.01 of its total potential returns per unit of risk. Orell Fuessli Holding is currently generating about 0.01 per unit of volatility. If you would invest 7,370 in Orell Fuessli Holding on September 12, 2024 and sell it today you would earn a total of 310.00 from holding Orell Fuessli Holding or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Interroll Holding AG vs. Orell Fuessli Holding
Performance |
| Timeline |
| Interroll Holding |
| Orell Fuessli Holding |
Interroll Holding and Orell Fuessli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interroll Holding and Orell Fuessli
The main advantage of trading using opposite Interroll Holding and Orell Fuessli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interroll Holding position performs unexpectedly, Orell Fuessli 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 Orell Fuessli will offset losses from the drop in Orell Fuessli's long position.| Interroll Holding vs. Belimo Holding | Interroll Holding vs. Bachem Holding AG | Interroll Holding vs. VAT Group AG | Interroll Holding vs. Kardex |
| Orell Fuessli vs. Hubersuhner AG | Orell Fuessli vs. Implenia AG | Orell Fuessli vs. Carlo Gavazzi Holding | Orell Fuessli vs. Mikron 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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