Correlation Between PolyPeptide Group and Comet Holding
Can any of the company-specific risk be diversified away by investing in both PolyPeptide Group and Comet 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 PolyPeptide Group and Comet Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PolyPeptide Group AG and Comet Holding AG, you can compare the effects of market volatilities on PolyPeptide Group and Comet 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 PolyPeptide Group with a short position of Comet Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PolyPeptide Group and Comet Holding.
Diversification Opportunities for PolyPeptide Group and Comet Holding
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PolyPeptide and Comet is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding PolyPeptide Group AG and Comet Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comet Holding AG and PolyPeptide Group 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 PolyPeptide Group AG are associated (or correlated) with Comet Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comet Holding AG has no effect on the direction of PolyPeptide Group i.e., PolyPeptide Group and Comet Holding go up and down completely randomly.
Pair Corralation between PolyPeptide Group and Comet Holding
Assuming the 90 days trading horizon PolyPeptide Group AG is expected to under-perform the Comet Holding. In addition to that, PolyPeptide Group is 1.41 times more volatile than Comet Holding AG. It trades about -0.17 of its total potential returns per unit of risk. Comet Holding AG is currently generating about -0.13 per unit of volatility. If you would invest 28,750 in Comet Holding AG on September 13, 2024 and sell it today you would lose (1,500) from holding Comet Holding AG or give up 5.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PolyPeptide Group AG vs. Comet Holding AG
Performance |
| Timeline |
| PolyPeptide Group |
| Comet Holding AG |
PolyPeptide Group and Comet Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PolyPeptide Group and Comet Holding
The main advantage of trading using opposite PolyPeptide Group and Comet Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PolyPeptide Group position performs unexpectedly, Comet 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 Comet Holding will offset losses from the drop in Comet Holding's long position.| PolyPeptide Group vs. Bachem Holding AG | PolyPeptide Group vs. Siegfried Holding | PolyPeptide Group vs. VAT Group AG | PolyPeptide Group vs. Comet Holding AG |
| Comet Holding vs. VAT Group AG | Comet Holding vs. Bachem Holding AG | Comet Holding vs. Inficon Holding | Comet Holding vs. Tecan Group 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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