Correlation Between Investis Holding and PSP Swiss
Can any of the company-specific risk be diversified away by investing in both Investis Holding and PSP Swiss 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 Investis Holding and PSP Swiss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investis Holding SA and PSP Swiss Property, you can compare the effects of market volatilities on Investis Holding and PSP Swiss 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 Investis Holding with a short position of PSP Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investis Holding and PSP Swiss.
Diversification Opportunities for Investis Holding and PSP Swiss
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investis and PSP is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Investis Holding SA and PSP Swiss Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSP Swiss Property and Investis 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 Investis Holding SA are associated (or correlated) with PSP Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSP Swiss Property has no effect on the direction of Investis Holding i.e., Investis Holding and PSP Swiss go up and down completely randomly.
Pair Corralation between Investis Holding and PSP Swiss
Assuming the 90 days trading horizon Investis Holding is expected to generate 2.67 times less return on investment than PSP Swiss. But when comparing it to its historical volatility, Investis Holding SA is 1.14 times less risky than PSP Swiss. It trades about 0.04 of its potential returns per unit of risk. PSP Swiss Property is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 13,370 in PSP Swiss Property on November 27, 2024 and sell it today you would earn a total of 170.00 from holding PSP Swiss Property or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investis Holding SA vs. PSP Swiss Property
Performance |
| Timeline |
| Investis Holding |
| PSP Swiss Property |
Investis Holding and PSP Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investis Holding and PSP Swiss
The main advantage of trading using opposite Investis Holding and PSP Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investis Holding position performs unexpectedly, PSP Swiss 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 PSP Swiss will offset losses from the drop in PSP Swiss' long position.| Investis Holding vs. Allreal Holding | Investis Holding vs. PSP Swiss Property | Investis Holding vs. Mobimo Hldg | Investis Holding vs. Swiss Prime Site |
| PSP Swiss vs. Swiss Prime Site | PSP Swiss vs. Allreal Holding | PSP Swiss vs. Mobimo Hldg | PSP Swiss vs. Helvetia 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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