Correlation Between LandisGyr Group and Carlo Gavazzi
Can any of the company-specific risk be diversified away by investing in both LandisGyr Group 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 LandisGyr Group and Carlo Gavazzi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LandisGyr Group AG and Carlo Gavazzi Holding, you can compare the effects of market volatilities on LandisGyr Group 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 LandisGyr Group with a short position of Carlo Gavazzi. Check out your portfolio center. Please also check ongoing floating volatility patterns of LandisGyr Group and Carlo Gavazzi.
Diversification Opportunities for LandisGyr Group and Carlo Gavazzi
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LandisGyr and Carlo is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding LandisGyr Group 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 LandisGyr Group 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 LandisGyr Group 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 LandisGyr Group i.e., LandisGyr Group and Carlo Gavazzi go up and down completely randomly.
Pair Corralation between LandisGyr Group and Carlo Gavazzi
Assuming the 90 days trading horizon LandisGyr Group AG is expected to under-perform the Carlo Gavazzi. In addition to that, LandisGyr Group is 2.61 times more volatile than Carlo Gavazzi Holding. It trades about -0.17 of its total potential returns per unit of risk. Carlo Gavazzi Holding is currently generating about 0.39 per unit of volatility. If you would invest 18,550 in Carlo Gavazzi Holding on November 27, 2024 and sell it today you would earn a total of 3,150 from holding Carlo Gavazzi Holding or generate 16.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LandisGyr Group AG vs. Carlo Gavazzi Holding
Performance |
| Timeline |
| LandisGyr Group AG |
| Carlo Gavazzi Holding |
LandisGyr Group and Carlo Gavazzi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LandisGyr Group and Carlo Gavazzi
The main advantage of trading using opposite LandisGyr Group and Carlo Gavazzi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LandisGyr Group 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.| LandisGyr Group vs. Basellandschaftliche Kantonalbank | LandisGyr Group vs. Basler Kantonalbank | LandisGyr Group vs. Softwareone Holding | LandisGyr Group vs. Thurgauer Kantonalbank |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |