Correlation Between Procimmo Real and Autoneum Holding
Can any of the company-specific risk be diversified away by investing in both Procimmo Real and Autoneum 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 Procimmo Real and Autoneum Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procimmo Real Estate and Autoneum Holding AG, you can compare the effects of market volatilities on Procimmo Real and Autoneum 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 Procimmo Real with a short position of Autoneum Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procimmo Real and Autoneum Holding.
Diversification Opportunities for Procimmo Real and Autoneum Holding
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Procimmo and Autoneum is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Procimmo Real Estate and Autoneum Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autoneum Holding and Procimmo Real 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 Procimmo Real Estate are associated (or correlated) with Autoneum Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autoneum Holding has no effect on the direction of Procimmo Real i.e., Procimmo Real and Autoneum Holding go up and down completely randomly.
Pair Corralation between Procimmo Real and Autoneum Holding
Assuming the 90 days trading horizon Procimmo Real is expected to generate 7.68 times less return on investment than Autoneum Holding. But when comparing it to its historical volatility, Procimmo Real Estate is 1.92 times less risky than Autoneum Holding. It trades about 0.1 of its potential returns per unit of risk. Autoneum Holding AG is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 11,960 in Autoneum Holding AG on October 29, 2024 and sell it today you would earn a total of 1,060 from holding Autoneum Holding AG or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procimmo Real Estate vs. Autoneum Holding AG
Performance |
| Timeline |
| Procimmo Real Estate |
| Autoneum Holding |
Procimmo Real and Autoneum Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procimmo Real and Autoneum Holding
The main advantage of trading using opposite Procimmo Real and Autoneum Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procimmo Real position performs unexpectedly, Autoneum 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 Autoneum Holding will offset losses from the drop in Autoneum Holding's long position.| Procimmo Real vs. CS Real Estate | Procimmo Real vs. Swissinvest Real Estate | Procimmo Real vs. CS Real Estate | Procimmo Real vs. Realstone Swiss Property |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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