Correlation Between Investis Holding and Zueblin Immobilien
Can any of the company-specific risk be diversified away by investing in both Investis Holding and Zueblin Immobilien 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 Zueblin Immobilien 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 Zueblin Immobilien Holding, you can compare the effects of market volatilities on Investis Holding and Zueblin Immobilien 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 Zueblin Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investis Holding and Zueblin Immobilien.
Diversification Opportunities for Investis Holding and Zueblin Immobilien
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Investis and Zueblin is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Investis Holding SA and Zueblin Immobilien Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zueblin Immobilien 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 Zueblin Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zueblin Immobilien has no effect on the direction of Investis Holding i.e., Investis Holding and Zueblin Immobilien go up and down completely randomly.
Pair Corralation between Investis Holding and Zueblin Immobilien
Assuming the 90 days trading horizon Investis Holding is expected to generate 1.58 times less return on investment than Zueblin Immobilien. But when comparing it to its historical volatility, Investis Holding SA is 3.65 times less risky than Zueblin Immobilien. It trades about 0.07 of its potential returns per unit of risk. Zueblin Immobilien Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,619 in Zueblin Immobilien Holding on September 1, 2024 and sell it today you would earn a total of 501.00 from holding Zueblin Immobilien Holding or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investis Holding SA vs. Zueblin Immobilien Holding
Performance |
| Timeline |
| Investis Holding |
| Zueblin Immobilien |
Investis Holding and Zueblin Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investis Holding and Zueblin Immobilien
The main advantage of trading using opposite Investis Holding and Zueblin Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investis Holding position performs unexpectedly, Zueblin Immobilien 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 Zueblin Immobilien will offset losses from the drop in Zueblin Immobilien's long position.| Investis Holding vs. Allreal Holding | Investis Holding vs. PSP Swiss Property | Investis Holding vs. Mobimo Hldg | Investis Holding vs. Swiss Prime Site |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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