Correlation Between Chocoladefabriken and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Cembra Money 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 Cembra Money 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 Cembra Money Bank, you can compare the effects of market volatilities on Chocoladefabriken and Cembra Money 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 Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Cembra Money.
Diversification Opportunities for Chocoladefabriken and Cembra Money
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chocoladefabriken and Cembra is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank 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 Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Cembra Money go up and down completely randomly.
Pair Corralation between Chocoladefabriken and Cembra Money
Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to under-perform the Cembra Money. In addition to that, Chocoladefabriken is 1.41 times more volatile than Cembra Money Bank. It trades about -0.2 of its total potential returns per unit of risk. Cembra Money Bank is currently generating about 0.19 per unit of volatility. If you would invest 7,870 in Cembra Money Bank on August 28, 2024 and sell it today you would earn a total of 250.00 from holding Cembra Money Bank or generate 3.18% 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. Cembra Money Bank
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| Cembra Money Bank |
Chocoladefabriken and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and Cembra Money
The main advantage of trading using opposite Chocoladefabriken and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| Chocoladefabriken vs. Chocoladefabriken Lindt Spruengli | Chocoladefabriken vs. Barry Callebaut AG | Chocoladefabriken vs. Givaudan SA | Chocoladefabriken vs. Geberit AG |
| Cembra Money vs. Banque Cantonale | Cembra Money vs. St Galler Kantonalbank | Cembra Money vs. PSP Swiss Property | Cembra Money vs. Berner Kantonalbank 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |