Correlation Between Chocoladefabriken and HIAG Immobilien
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and HIAG Immobilien 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 Chocoladefabriken and HIAG Immobilien into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and HIAG Immobilien Holding, you can compare the effects of market volatilities on Chocoladefabriken and HIAG Immobilien 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 Chocoladefabriken with a short position of HIAG Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and HIAG Immobilien.
Diversification Opportunities for Chocoladefabriken and HIAG Immobilien
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chocoladefabriken and HIAG is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and HIAG Immobilien Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIAG Immobilien Holding and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli are associated (or correlated) with HIAG Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIAG Immobilien Holding has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and HIAG Immobilien go up and down completely randomly.
Pair Corralation between Chocoladefabriken and HIAG Immobilien
Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to under-perform the HIAG Immobilien. In addition to that, Chocoladefabriken is 1.48 times more volatile than HIAG Immobilien Holding. It trades about -0.05 of its total potential returns per unit of risk. HIAG Immobilien Holding is currently generating about 0.12 per unit of volatility. If you would invest 7,360 in HIAG Immobilien Holding on August 25, 2024 and sell it today you would earn a total of 880.00 from holding HIAG Immobilien Holding or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chocoladefabriken Lindt Spruen vs. HIAG Immobilien Holding
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| HIAG Immobilien Holding |
Chocoladefabriken and HIAG Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and HIAG Immobilien
The main advantage of trading using opposite Chocoladefabriken and HIAG Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, HIAG Immobilien 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 HIAG Immobilien will offset losses from the drop in HIAG Immobilien's long position.| Chocoladefabriken vs. Barry Callebaut AG | Chocoladefabriken vs. Givaudan SA | Chocoladefabriken vs. Geberit AG | Chocoladefabriken vs. Straumann Holding AG |
| HIAG Immobilien vs. Allreal Holding | HIAG Immobilien vs. Mobimo Hldg | HIAG Immobilien vs. Swiss Prime Site | HIAG Immobilien vs. PSP Swiss Property |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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