Correlation Between Meyer Burger and SKAN Group
Can any of the company-specific risk be diversified away by investing in both Meyer Burger and SKAN 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 Meyer Burger and SKAN Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meyer Burger Tech and SKAN Group AG, you can compare the effects of market volatilities on Meyer Burger and SKAN 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 Meyer Burger with a short position of SKAN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meyer Burger and SKAN Group.
Diversification Opportunities for Meyer Burger and SKAN Group
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Meyer and SKAN is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Meyer Burger Tech and SKAN Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKAN Group AG and Meyer Burger 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 Meyer Burger Tech are associated (or correlated) with SKAN Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKAN Group AG has no effect on the direction of Meyer Burger i.e., Meyer Burger and SKAN Group go up and down completely randomly.
Pair Corralation between Meyer Burger and SKAN Group
Assuming the 90 days trading horizon Meyer Burger Tech is expected to under-perform the SKAN Group. In addition to that, Meyer Burger is 5.59 times more volatile than SKAN Group AG. It trades about -0.12 of its total potential returns per unit of risk. SKAN Group AG is currently generating about 0.0 per unit of volatility. If you would invest 7,610 in SKAN Group AG on August 31, 2024 and sell it today you would lose (200.00) from holding SKAN Group AG or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meyer Burger Tech vs. SKAN Group AG
Performance |
| Timeline |
| Meyer Burger Tech |
| SKAN Group AG |
Meyer Burger and SKAN Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meyer Burger and SKAN Group
The main advantage of trading using opposite Meyer Burger and SKAN Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meyer Burger position performs unexpectedly, SKAN 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 SKAN Group will offset losses from the drop in SKAN Group's long position.| Meyer Burger vs. Jungfraubahn Holding AG | Meyer Burger vs. Amsterdam Commodities NV | Meyer Burger vs. Flow Traders BV | Meyer Burger vs. ForFarmers NV |
| SKAN Group vs. Bachem Holding AG | SKAN Group vs. PolyPeptide Group AG | SKAN Group vs. VAT Group AG | SKAN Group vs. Belimo 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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