Correlation Between PolyPeptide Group and SKAN Group
Can any of the company-specific risk be diversified away by investing in both PolyPeptide Group and SKAN Group 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 SKAN Group 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 SKAN Group AG, you can compare the effects of market volatilities on PolyPeptide Group and SKAN Group 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 SKAN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PolyPeptide Group and SKAN Group.
Diversification Opportunities for PolyPeptide Group and SKAN Group
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PolyPeptide and SKAN is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding PolyPeptide Group AG and SKAN Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKAN Group 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 SKAN Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKAN Group AG has no effect on the direction of PolyPeptide Group i.e., PolyPeptide Group and SKAN Group go up and down completely randomly.
Pair Corralation between PolyPeptide Group and SKAN Group
Assuming the 90 days trading horizon PolyPeptide Group AG is expected to generate 2.04 times more return on investment than SKAN Group. However, PolyPeptide Group is 2.04 times more volatile than SKAN Group AG. It trades about 0.08 of its potential returns per unit of risk. SKAN Group AG is currently generating about -0.01 per unit of risk. If you would invest 1,784 in PolyPeptide Group AG on September 2, 2024 and sell it today you would earn a total of 1,111 from holding PolyPeptide Group AG or generate 62.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PolyPeptide Group AG vs. SKAN Group AG
Performance |
| Timeline |
| PolyPeptide Group |
| SKAN Group AG |
PolyPeptide Group and SKAN Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PolyPeptide Group and SKAN Group
The main advantage of trading using opposite PolyPeptide Group and SKAN Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PolyPeptide Group position performs unexpectedly, SKAN Group 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 SKAN Group will offset losses from the drop in SKAN Group'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 |
| SKAN Group vs. Straumann Holding AG | SKAN Group vs. Geberit AG | SKAN Group vs. Sika AG | SKAN Group vs. Givaudan SA |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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