Correlation Between OC Oerlikon and Vontobel Holding
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon and Vontobel Holding 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 Vontobel Holding 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 Vontobel Holding, you can compare the effects of market volatilities on OC Oerlikon and Vontobel Holding 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 Vontobel Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and Vontobel Holding.
Diversification Opportunities for OC Oerlikon and Vontobel Holding
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OERL and Vontobel is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp and Vontobel Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontobel 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 Vontobel Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontobel Holding has no effect on the direction of OC Oerlikon i.e., OC Oerlikon and Vontobel Holding go up and down completely randomly.
Pair Corralation between OC Oerlikon and Vontobel Holding
Assuming the 90 days trading horizon OC Oerlikon Corp is expected to under-perform the Vontobel Holding. In addition to that, OC Oerlikon is 2.75 times more volatile than Vontobel Holding. It trades about -0.15 of its total potential returns per unit of risk. Vontobel Holding is currently generating about 0.17 per unit of volatility. If you would invest 5,620 in Vontobel Holding on August 31, 2024 and sell it today you would earn a total of 150.00 from holding Vontobel Holding or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OC Oerlikon Corp vs. Vontobel Holding
Performance |
| Timeline |
| OC Oerlikon Corp |
| Vontobel Holding |
OC Oerlikon and Vontobel Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OC Oerlikon and Vontobel Holding
The main advantage of trading using opposite OC Oerlikon and Vontobel Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon position performs unexpectedly, Vontobel Holding 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 Vontobel Holding will offset losses from the drop in Vontobel Holding'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 |
| Vontobel Holding vs. Cembra Money Bank | Vontobel Holding vs. OC Oerlikon Corp | Vontobel Holding vs. Helvetia Holding AG | Vontobel Holding 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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