Correlation Between Orell Fuessli and Implenia
Can any of the company-specific risk be diversified away by investing in both Orell Fuessli and Implenia 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 Orell Fuessli and Implenia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orell Fuessli Holding and Implenia AG, you can compare the effects of market volatilities on Orell Fuessli and Implenia 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 Orell Fuessli with a short position of Implenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orell Fuessli and Implenia.
Diversification Opportunities for Orell Fuessli and Implenia
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Orell and Implenia is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Orell Fuessli Holding and Implenia AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implenia AG and Orell Fuessli 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 Orell Fuessli Holding are associated (or correlated) with Implenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implenia AG has no effect on the direction of Orell Fuessli i.e., Orell Fuessli and Implenia go up and down completely randomly.
Pair Corralation between Orell Fuessli and Implenia
Assuming the 90 days trading horizon Orell Fuessli Holding is expected to generate 0.51 times more return on investment than Implenia. However, Orell Fuessli Holding is 1.97 times less risky than Implenia. It trades about 0.07 of its potential returns per unit of risk. Implenia AG is currently generating about -0.12 per unit of risk. If you would invest 7,600 in Orell Fuessli Holding on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Orell Fuessli Holding or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orell Fuessli Holding vs. Implenia AG
Performance |
| Timeline |
| Orell Fuessli Holding |
| Implenia AG |
Orell Fuessli and Implenia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orell Fuessli and Implenia
The main advantage of trading using opposite Orell Fuessli and Implenia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orell Fuessli position performs unexpectedly, Implenia 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 Implenia will offset losses from the drop in Implenia's long position.| Orell Fuessli vs. Hubersuhner AG | Orell Fuessli vs. Implenia AG | Orell Fuessli vs. Carlo Gavazzi Holding | Orell Fuessli vs. Mikron Holding AG |
| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Stadler Rail 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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