Correlation Between Chocoladefabriken and Swissquote Group
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Swissquote Group 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 Swissquote Group 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 Swissquote Group Holding, you can compare the effects of market volatilities on Chocoladefabriken and Swissquote Group 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 Swissquote Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Swissquote Group.
Diversification Opportunities for Chocoladefabriken and Swissquote Group
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chocoladefabriken and Swissquote is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Swissquote Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swissquote Group 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 Swissquote Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swissquote Group Holding has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Swissquote Group go up and down completely randomly.
Pair Corralation between Chocoladefabriken and Swissquote Group
Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to under-perform the Swissquote Group. But the stock apears to be less risky and, when comparing its historical volatility, Chocoladefabriken Lindt Spruengli is 1.87 times less risky than Swissquote Group. The stock trades about -0.19 of its potential returns per unit of risk. The Swissquote Group Holding is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 30,080 in Swissquote Group Holding on August 24, 2024 and sell it today you would earn a total of 3,660 from holding Swissquote Group Holding or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chocoladefabriken Lindt Spruen vs. Swissquote Group Holding
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| Swissquote Group Holding |
Chocoladefabriken and Swissquote Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and Swissquote Group
The main advantage of trading using opposite Chocoladefabriken and Swissquote Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Swissquote Group 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 Swissquote Group will offset losses from the drop in Swissquote Group's long position.| Chocoladefabriken vs. Chocoladefabriken Lindt Spruengli | Chocoladefabriken vs. Barry Callebaut AG | Chocoladefabriken vs. Givaudan SA | Chocoladefabriken vs. Geberit AG |
| Swissquote Group vs. Logitech International SA | Swissquote Group vs. Swiss Life Holding | Swissquote Group vs. VAT Group AG | Swissquote Group vs. Partners Group Holding |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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