Correlation Between Chocoladefabriken and Vontobel Holding
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Vontobel Holding 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 Vontobel Holding 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 Vontobel Holding, you can compare the effects of market volatilities on Chocoladefabriken and Vontobel Holding 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 Vontobel Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Vontobel Holding.
Diversification Opportunities for Chocoladefabriken and Vontobel Holding
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chocoladefabriken and Vontobel is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Vontobel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontobel 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 Vontobel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontobel Holding has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Vontobel Holding go up and down completely randomly.
Pair Corralation between Chocoladefabriken and Vontobel Holding
Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to under-perform the Vontobel Holding. In addition to that, Chocoladefabriken is 1.49 times more volatile than Vontobel Holding. It trades about -0.19 of its total potential returns per unit of risk. Vontobel Holding is currently generating about 0.0 per unit of volatility. If you would invest 5,720 in Vontobel Holding on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Vontobel Holding or generate 0.0% 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. Vontobel Holding
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| Vontobel Holding |
Chocoladefabriken and Vontobel Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and Vontobel Holding
The main advantage of trading using opposite Chocoladefabriken and Vontobel Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Vontobel Holding 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 Vontobel Holding will offset losses from the drop in Vontobel Holding's long position.| Chocoladefabriken vs. Chocoladefabriken Lindt Spruengli | Chocoladefabriken vs. Barry Callebaut AG | Chocoladefabriken vs. Givaudan SA | Chocoladefabriken vs. Geberit AG |
| Vontobel Holding vs. Julius Baer Gruppe | Vontobel Holding vs. Helvetia Holding AG | Vontobel Holding vs. Sulzer AG | Vontobel Holding vs. Swiss Life 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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