Correlation Between OC Oerlikon and Leonteq AG
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon and Leonteq AG 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 OC Oerlikon and Leonteq AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OC Oerlikon Corp and Leonteq AG, you can compare the effects of market volatilities on OC Oerlikon and Leonteq AG 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 OC Oerlikon with a short position of Leonteq AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and Leonteq AG.
Diversification Opportunities for OC Oerlikon and Leonteq AG
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OERL and Leonteq is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp and Leonteq AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leonteq AG and OC Oerlikon 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 OC Oerlikon Corp are associated (or correlated) with Leonteq AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leonteq AG has no effect on the direction of OC Oerlikon i.e., OC Oerlikon and Leonteq AG go up and down completely randomly.
Pair Corralation between OC Oerlikon and Leonteq AG
Assuming the 90 days trading horizon OC Oerlikon Corp is expected to generate 0.47 times more return on investment than Leonteq AG. However, OC Oerlikon Corp is 2.12 times less risky than Leonteq AG. It trades about 0.29 of its potential returns per unit of risk. Leonteq AG is currently generating about 0.06 per unit of risk. If you would invest 361.00 in OC Oerlikon Corp on November 27, 2024 and sell it today you would earn a total of 54.00 from holding OC Oerlikon Corp or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OC Oerlikon Corp vs. Leonteq AG
Performance |
| Timeline |
| OC Oerlikon Corp |
| Leonteq AG |
OC Oerlikon and Leonteq AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OC Oerlikon and Leonteq AG
The main advantage of trading using opposite OC Oerlikon and Leonteq AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon position performs unexpectedly, Leonteq AG 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 Leonteq AG will offset losses from the drop in Leonteq AG's long position.| OC Oerlikon vs. Sulzer AG | OC Oerlikon vs. Helvetia Holding AG | OC Oerlikon vs. Swiss Life Holding | OC Oerlikon vs. Adecco Group AG |
| Leonteq AG vs. Cembra Money Bank | Leonteq AG vs. OC Oerlikon Corp | Leonteq AG vs. Helvetia Holding AG | Leonteq AG vs. mobilezone 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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