Correlation Between OC Oerlikon and IVF Hartmann
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon and IVF Hartmann 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 IVF Hartmann 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 IVF Hartmann Holding, you can compare the effects of market volatilities on OC Oerlikon and IVF Hartmann 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 IVF Hartmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and IVF Hartmann.
Diversification Opportunities for OC Oerlikon and IVF Hartmann
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OERL and IVF is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp and IVF Hartmann Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IVF Hartmann 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 IVF Hartmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IVF Hartmann Holding has no effect on the direction of OC Oerlikon i.e., OC Oerlikon and IVF Hartmann go up and down completely randomly.
Pair Corralation between OC Oerlikon and IVF Hartmann
Assuming the 90 days trading horizon OC Oerlikon Corp is expected to under-perform the IVF Hartmann. In addition to that, OC Oerlikon is 1.42 times more volatile than IVF Hartmann Holding. It trades about -0.11 of its total potential returns per unit of risk. IVF Hartmann Holding is currently generating about 0.1 per unit of volatility. If you would invest 13,000 in IVF Hartmann Holding on September 3, 2024 and sell it today you would earn a total of 2,100 from holding IVF Hartmann Holding or generate 16.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
OC Oerlikon Corp vs. IVF Hartmann Holding
Performance |
| Timeline |
| OC Oerlikon Corp |
| IVF Hartmann Holding |
OC Oerlikon and IVF Hartmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OC Oerlikon and IVF Hartmann
The main advantage of trading using opposite OC Oerlikon and IVF Hartmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon position performs unexpectedly, IVF Hartmann 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 IVF Hartmann will offset losses from the drop in IVF Hartmann's long position.| OC Oerlikon vs. Emmi AG | OC Oerlikon vs. EMS CHEMIE HOLDING AG | OC Oerlikon vs. Barry Callebaut AG | OC Oerlikon vs. VAT Group AG |
| IVF Hartmann vs. Implenia AG | IVF Hartmann vs. OC Oerlikon Corp | IVF Hartmann vs. U Blox Holding | IVF Hartmann 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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