Correlation Between Gesundheitswelt Chiemgau and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both Gesundheitswelt Chiemgau and CEWE Stiftung 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 Gesundheitswelt Chiemgau and CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gesundheitswelt Chiemgau AG and CEWE Stiftung Co, you can compare the effects of market volatilities on Gesundheitswelt Chiemgau and CEWE Stiftung 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 Gesundheitswelt Chiemgau with a short position of CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gesundheitswelt Chiemgau and CEWE Stiftung.
Diversification Opportunities for Gesundheitswelt Chiemgau and CEWE Stiftung
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gesundheitswelt and CEWE is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gesundheitswelt Chiemgau AG and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung and Gesundheitswelt Chiemgau 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 Gesundheitswelt Chiemgau AG are associated (or correlated) with CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of Gesundheitswelt Chiemgau i.e., Gesundheitswelt Chiemgau and CEWE Stiftung go up and down completely randomly.
Pair Corralation between Gesundheitswelt Chiemgau and CEWE Stiftung
Assuming the 90 days trading horizon Gesundheitswelt Chiemgau AG is expected to generate 0.57 times more return on investment than CEWE Stiftung. However, Gesundheitswelt Chiemgau AG is 1.77 times less risky than CEWE Stiftung. It trades about 0.09 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about -0.01 per unit of risk. If you would invest 1,220 in Gesundheitswelt Chiemgau AG on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Gesundheitswelt Chiemgau AG or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gesundheitswelt Chiemgau AG vs. CEWE Stiftung Co
Performance |
| Timeline |
| Gesundheitswelt Chiemgau |
| CEWE Stiftung |
Gesundheitswelt Chiemgau and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gesundheitswelt Chiemgau and CEWE Stiftung
The main advantage of trading using opposite Gesundheitswelt Chiemgau and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gesundheitswelt Chiemgau position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| Gesundheitswelt Chiemgau vs. Service International | Gesundheitswelt Chiemgau vs. Bright Horizons Family | Gesundheitswelt Chiemgau vs. BOYD GROUP SERVICES | Gesundheitswelt Chiemgau vs. Frontdoor |
| CEWE Stiftung vs. Service International | CEWE Stiftung vs. Bright Horizons Family | CEWE Stiftung vs. BOYD GROUP SERVICES | CEWE Stiftung vs. Frontdoor |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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