Correlation Between Kudelski and Implenia
Can any of the company-specific risk be diversified away by investing in both Kudelski and Implenia 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 Implenia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kudelski and Implenia AG, you can compare the effects of market volatilities on Kudelski and Implenia 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 Implenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kudelski and Implenia.
Diversification Opportunities for Kudelski and Implenia
Average diversification
The 3 months correlation between Kudelski and Implenia is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kudelski and Implenia AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implenia 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 Implenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implenia AG has no effect on the direction of Kudelski i.e., Kudelski and Implenia go up and down completely randomly.
Pair Corralation between Kudelski and Implenia
Assuming the 90 days trading horizon Kudelski is expected to under-perform the Implenia. In addition to that, Kudelski is 1.5 times more volatile than Implenia AG. It trades about -0.2 of its total potential returns per unit of risk. Implenia AG is currently generating about -0.12 per unit of volatility. If you would invest 3,050 in Implenia AG on September 1, 2024 and sell it today you would lose (130.00) from holding Implenia AG or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kudelski vs. Implenia AG
Performance |
| Timeline |
| Kudelski |
| Implenia AG |
Kudelski and Implenia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kudelski and Implenia
The main advantage of trading using opposite Kudelski and Implenia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kudelski position performs unexpectedly, Implenia 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 Implenia will offset losses from the drop in Implenia's long position.| Kudelski vs. Jungfraubahn Holding AG | Kudelski vs. Amsterdam Commodities NV | Kudelski vs. Flow Traders BV | Kudelski vs. ForFarmers NV |
| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Stadler Rail 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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