Correlation Between PolyPeptide Group and Siegfried Holding
Can any of the company-specific risk be diversified away by investing in both PolyPeptide Group and Siegfried 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 Siegfried 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 Siegfried Holding, you can compare the effects of market volatilities on PolyPeptide Group and Siegfried 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 Siegfried Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PolyPeptide Group and Siegfried Holding.
Diversification Opportunities for PolyPeptide Group and Siegfried Holding
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PolyPeptide and Siegfried is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding PolyPeptide Group AG and Siegfried Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siegfried Holding 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 Siegfried Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siegfried Holding has no effect on the direction of PolyPeptide Group i.e., PolyPeptide Group and Siegfried Holding go up and down completely randomly.
Pair Corralation between PolyPeptide Group and Siegfried Holding
Assuming the 90 days trading horizon PolyPeptide Group AG is expected to generate 1.51 times more return on investment than Siegfried Holding. However, PolyPeptide Group is 1.51 times more volatile than Siegfried Holding. It trades about -0.16 of its potential returns per unit of risk. Siegfried Holding is currently generating about -0.28 per unit of risk. If you would invest 3,070 in PolyPeptide Group AG on September 12, 2024 and sell it today you would lose (275.00) from holding PolyPeptide Group AG or give up 8.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PolyPeptide Group AG vs. Siegfried Holding
Performance |
| Timeline |
| PolyPeptide Group |
| Siegfried Holding |
PolyPeptide Group and Siegfried Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PolyPeptide Group and Siegfried Holding
The main advantage of trading using opposite PolyPeptide Group and Siegfried Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PolyPeptide Group position performs unexpectedly, Siegfried 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 Siegfried Holding will offset losses from the drop in Siegfried 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 |
| Siegfried Holding vs. Bachem Holding AG | Siegfried Holding vs. VAT Group AG | Siegfried Holding vs. Tecan Group AG | Siegfried Holding vs. Straumann Holding 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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