Correlation Between Kudelski and Alpine Select
Can any of the company-specific risk be diversified away by investing in both Kudelski and Alpine Select 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 Kudelski and Alpine Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kudelski and Alpine Select AG, you can compare the effects of market volatilities on Kudelski and Alpine Select 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 Kudelski with a short position of Alpine Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kudelski and Alpine Select.
Diversification Opportunities for Kudelski and Alpine Select
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kudelski and Alpine is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kudelski and Alpine Select AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Select AG and Kudelski 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 Kudelski are associated (or correlated) with Alpine Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Select AG has no effect on the direction of Kudelski i.e., Kudelski and Alpine Select go up and down completely randomly.
Pair Corralation between Kudelski and Alpine Select
Assuming the 90 days trading horizon Kudelski is expected to generate 1.63 times more return on investment than Alpine Select. However, Kudelski is 1.63 times more volatile than Alpine Select AG. It trades about 0.24 of its potential returns per unit of risk. Alpine Select AG is currently generating about 0.01 per unit of risk. If you would invest 127.00 in Kudelski on November 10, 2024 and sell it today you would earn a total of 18.00 from holding Kudelski or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
Kudelski vs. Alpine Select AG
Performance |
| Timeline |
| Kudelski |
| Alpine Select AG |
Kudelski and Alpine Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kudelski and Alpine Select
The main advantage of trading using opposite Kudelski and Alpine Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kudelski position performs unexpectedly, Alpine Select 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 Alpine Select will offset losses from the drop in Alpine Select's long position.| Kudelski vs. Implenia AG | Kudelski vs. OC Oerlikon Corp | Kudelski vs. U Blox Holding | Kudelski vs. Sulzer AG |
| Alpine Select vs. Nebag ag | Alpine Select vs. Carlo Gavazzi Holding | Alpine Select vs. Private Equity Holding | Alpine Select vs. Bellevue Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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