Correlation Between Metall Zug and LandisGyr Group
Can any of the company-specific risk be diversified away by investing in both Metall Zug and LandisGyr 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 Metall Zug and LandisGyr Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metall Zug AG and LandisGyr Group AG, you can compare the effects of market volatilities on Metall Zug and LandisGyr 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 Metall Zug with a short position of LandisGyr Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metall Zug and LandisGyr Group.
Diversification Opportunities for Metall Zug and LandisGyr Group
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Metall and LandisGyr is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Metall Zug AG and LandisGyr Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LandisGyr Group AG and Metall Zug 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 Metall Zug AG are associated (or correlated) with LandisGyr Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LandisGyr Group AG has no effect on the direction of Metall Zug i.e., Metall Zug and LandisGyr Group go up and down completely randomly.
Pair Corralation between Metall Zug and LandisGyr Group
Assuming the 90 days trading horizon Metall Zug AG is expected to under-perform the LandisGyr Group. In addition to that, Metall Zug is 1.46 times more volatile than LandisGyr Group AG. It trades about -0.15 of its total potential returns per unit of risk. LandisGyr Group AG is currently generating about -0.19 per unit of volatility. If you would invest 6,770 in LandisGyr Group AG on September 3, 2024 and sell it today you would lose (370.00) from holding LandisGyr Group AG or give up 5.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metall Zug AG vs. LandisGyr Group AG
Performance |
| Timeline |
| Metall Zug AG |
| LandisGyr Group AG |
Metall Zug and LandisGyr Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metall Zug and LandisGyr Group
The main advantage of trading using opposite Metall Zug and LandisGyr Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metall Zug position performs unexpectedly, LandisGyr 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 LandisGyr Group will offset losses from the drop in LandisGyr Group's long position.| Metall Zug vs. Bucher Industries AG | Metall Zug vs. Burckhardt Compression | Metall Zug vs. Also Holding AG | Metall Zug vs. Emmi AG |
| LandisGyr Group vs. Bucher Industries AG | LandisGyr Group vs. Komax Holding AG | LandisGyr Group vs. Comet Holding AG | LandisGyr Group vs. Bachem Holding 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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