Correlation Between Interroll Holding and Zehnder
Can any of the company-specific risk be diversified away by investing in both Interroll Holding and Zehnder 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 Zehnder 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 Zehnder, you can compare the effects of market volatilities on Interroll Holding and Zehnder 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 Zehnder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interroll Holding and Zehnder.
Diversification Opportunities for Interroll Holding and Zehnder
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Interroll and Zehnder is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Interroll Holding AG and Zehnder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zehnder 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 Zehnder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zehnder has no effect on the direction of Interroll Holding i.e., Interroll Holding and Zehnder go up and down completely randomly.
Pair Corralation between Interroll Holding and Zehnder
Assuming the 90 days trading horizon Interroll Holding AG is expected to generate 0.69 times more return on investment than Zehnder. However, Interroll Holding AG is 1.45 times less risky than Zehnder. It trades about -0.14 of its potential returns per unit of risk. Zehnder is currently generating about -0.26 per unit of risk. If you would invest 231,000 in Interroll Holding AG on August 31, 2024 and sell it today you would lose (13,000) from holding Interroll Holding AG or give up 5.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Interroll Holding AG vs. Zehnder
Performance |
| Timeline |
| Interroll Holding |
| Zehnder |
Interroll Holding and Zehnder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interroll Holding and Zehnder
The main advantage of trading using opposite Interroll Holding and Zehnder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interroll Holding position performs unexpectedly, Zehnder 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 Zehnder will offset losses from the drop in Zehnder's long position.| Interroll Holding vs. Belimo Holding | Interroll Holding vs. Bachem Holding AG | Interroll Holding vs. VAT Group AG | Interroll Holding vs. Kardex |
| Zehnder vs. EMS CHEMIE HOLDING AG | Zehnder vs. Geberit AG | Zehnder vs. VAT Group AG | Zehnder vs. Interroll 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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