Correlation Between OC Oerlikon and Swiss Steel
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon and Swiss Steel 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 Swiss Steel 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 Swiss Steel Holding, you can compare the effects of market volatilities on OC Oerlikon and Swiss Steel 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 Swiss Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and Swiss Steel.
Diversification Opportunities for OC Oerlikon and Swiss Steel
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OERL and Swiss is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp and Swiss Steel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Steel Holding 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 Swiss Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Steel Holding has no effect on the direction of OC Oerlikon i.e., OC Oerlikon and Swiss Steel go up and down completely randomly.
Pair Corralation between OC Oerlikon and Swiss Steel
Assuming the 90 days trading horizon OC Oerlikon Corp is expected to generate 0.37 times more return on investment than Swiss Steel. However, OC Oerlikon Corp is 2.73 times less risky than Swiss Steel. It trades about -0.12 of its potential returns per unit of risk. Swiss Steel Holding is currently generating about -0.6 per unit of risk. If you would invest 395.00 in OC Oerlikon Corp on September 1, 2024 and sell it today you would lose (21.00) from holding OC Oerlikon Corp or give up 5.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
OC Oerlikon Corp vs. Swiss Steel Holding
Performance |
| Timeline |
| OC Oerlikon Corp |
| Swiss Steel Holding |
OC Oerlikon and Swiss Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OC Oerlikon and Swiss Steel
The main advantage of trading using opposite OC Oerlikon and Swiss Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon position performs unexpectedly, Swiss Steel 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 Swiss Steel will offset losses from the drop in Swiss Steel'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 |
| Swiss Steel vs. OC Oerlikon Corp | Swiss Steel vs. Meyer Burger Tech | Swiss Steel vs. Evolva Holding SA | Swiss Steel vs. Sulzer 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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