Correlation Between Lem Holding and IVF Hartmann
Can any of the company-specific risk be diversified away by investing in both Lem Holding and IVF Hartmann 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 Lem Holding and IVF Hartmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lem Holding SA and IVF Hartmann Holding, you can compare the effects of market volatilities on Lem Holding and IVF Hartmann 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 Lem Holding with a short position of IVF Hartmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lem Holding and IVF Hartmann.
Diversification Opportunities for Lem Holding and IVF Hartmann
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lem and IVF is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lem Holding SA and IVF Hartmann Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IVF Hartmann Holding and Lem 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 Lem Holding SA are associated (or correlated) with IVF Hartmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IVF Hartmann Holding has no effect on the direction of Lem Holding i.e., Lem Holding and IVF Hartmann go up and down completely randomly.
Pair Corralation between Lem Holding and IVF Hartmann
Assuming the 90 days trading horizon Lem Holding SA is expected to generate 1.23 times more return on investment than IVF Hartmann. However, Lem Holding is 1.23 times more volatile than IVF Hartmann Holding. It trades about -0.06 of its potential returns per unit of risk. IVF Hartmann Holding is currently generating about -0.11 per unit of risk. If you would invest 87,000 in Lem Holding SA on December 1, 2024 and sell it today you would lose (2,900) from holding Lem Holding SA or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lem Holding SA vs. IVF Hartmann Holding
Performance |
| Timeline |
| Lem Holding SA |
| IVF Hartmann Holding |
Lem Holding and IVF Hartmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lem Holding and IVF Hartmann
The main advantage of trading using opposite Lem Holding and IVF Hartmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lem Holding position performs unexpectedly, IVF Hartmann 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 IVF Hartmann will offset losses from the drop in IVF Hartmann's long position.| Lem Holding vs. Inficon Holding | Lem Holding vs. Belimo Holding | Lem Holding vs. Interroll Holding AG | Lem Holding vs. Comet Holding AG |
| IVF Hartmann vs. Softwareone Holding | IVF Hartmann vs. Schweiter Technologies AG | IVF Hartmann vs. Glarner Kantonalbank | IVF Hartmann vs. Metall Zug 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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