Correlation Between Komax Holding and Carlo Gavazzi
Can any of the company-specific risk be diversified away by investing in both Komax Holding and Carlo Gavazzi 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 Komax Holding and Carlo Gavazzi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komax Holding AG and Carlo Gavazzi Holding, you can compare the effects of market volatilities on Komax Holding and Carlo Gavazzi 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 Komax Holding with a short position of Carlo Gavazzi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komax Holding and Carlo Gavazzi.
Diversification Opportunities for Komax Holding and Carlo Gavazzi
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Komax and Carlo is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Komax Holding AG and Carlo Gavazzi Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlo Gavazzi Holding and Komax 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 Komax Holding AG are associated (or correlated) with Carlo Gavazzi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlo Gavazzi Holding has no effect on the direction of Komax Holding i.e., Komax Holding and Carlo Gavazzi go up and down completely randomly.
Pair Corralation between Komax Holding and Carlo Gavazzi
Assuming the 90 days trading horizon Komax Holding AG is expected to under-perform the Carlo Gavazzi. But the stock apears to be less risky and, when comparing its historical volatility, Komax Holding AG is 1.2 times less risky than Carlo Gavazzi. The stock trades about -0.08 of its potential returns per unit of risk. The Carlo Gavazzi Holding is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 27,397 in Carlo Gavazzi Holding on September 12, 2024 and sell it today you would lose (8,197) from holding Carlo Gavazzi Holding or give up 29.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Komax Holding AG vs. Carlo Gavazzi Holding
Performance |
| Timeline |
| Komax Holding AG |
| Carlo Gavazzi Holding |
Komax Holding and Carlo Gavazzi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komax Holding and Carlo Gavazzi
The main advantage of trading using opposite Komax Holding and Carlo Gavazzi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komax Holding position performs unexpectedly, Carlo Gavazzi 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 Carlo Gavazzi will offset losses from the drop in Carlo Gavazzi's long position.| Komax Holding vs. Comet Holding AG | Komax Holding vs. Bossard Holding AG | Komax Holding vs. VAT Group AG | Komax Holding vs. Bucher Industries AG |
| Carlo Gavazzi vs. Bucher Industries AG | Carlo Gavazzi vs. Burkhalter Holding AG | Carlo Gavazzi vs. mobilezone ag | Carlo Gavazzi vs. Also 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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