Correlation Between Precision Optics, and Straumann Holding
Can any of the company-specific risk be diversified away by investing in both Precision Optics, and Straumann 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 Precision Optics, and Straumann Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Precision Optics, and Straumann Holding AG, you can compare the effects of market volatilities on Precision Optics, and Straumann 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 Precision Optics, with a short position of Straumann Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Precision Optics, and Straumann Holding.
Diversification Opportunities for Precision Optics, and Straumann Holding
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Precision and Straumann is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Precision Optics, and Straumann Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Straumann Holding and Precision Optics, 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 Precision Optics, are associated (or correlated) with Straumann Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straumann Holding has no effect on the direction of Precision Optics, i.e., Precision Optics, and Straumann Holding go up and down completely randomly.
Pair Corralation between Precision Optics, and Straumann Holding
Given the investment horizon of 90 days Precision Optics, is expected to under-perform the Straumann Holding. In addition to that, Precision Optics, is 1.5 times more volatile than Straumann Holding AG. It trades about -0.09 of its total potential returns per unit of risk. Straumann Holding AG is currently generating about 0.25 per unit of volatility. If you would invest 1,254 in Straumann Holding AG on October 20, 2024 and sell it today you would earn a total of 113.00 from holding Straumann Holding AG or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Precision Optics, vs. Straumann Holding AG
Performance |
| Timeline |
| Precision Optics, |
| Straumann Holding |
Precision Optics, and Straumann Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Precision Optics, and Straumann Holding
The main advantage of trading using opposite Precision Optics, and Straumann Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Precision Optics, position performs unexpectedly, Straumann 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 Straumann Holding will offset losses from the drop in Straumann Holding's long position.| Precision Optics, vs. Repro Med Systems | Precision Optics, vs. InfuSystems Holdings | Precision Optics, vs. Utah Medical Products | Precision Optics, vs. Milestone Scientific |
| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA | Straumann Holding vs. EssilorLuxottica Socit anonyme |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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