Correlation Between Procimmo Real and Hypothekarbank Lenzburg
Can any of the company-specific risk be diversified away by investing in both Procimmo Real and Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg AG, you can compare the effects of market volatilities on Procimmo Real and Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procimmo Real and Hypothekarbank Lenzburg.
Diversification Opportunities for Procimmo Real and Hypothekarbank Lenzburg
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Procimmo and Hypothekarbank is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Procimmo Real Estate and Hypothekarbank Lenzburg AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hypothekarbank Lenzburg has no effect on the direction of Procimmo Real i.e., Procimmo Real and Hypothekarbank Lenzburg go up and down completely randomly.
Pair Corralation between Procimmo Real and Hypothekarbank Lenzburg
Assuming the 90 days trading horizon Procimmo Real Estate is expected to generate 1.62 times more return on investment than Hypothekarbank Lenzburg. However, Procimmo Real is 1.62 times more volatile than Hypothekarbank Lenzburg AG. It trades about 0.04 of its potential returns per unit of risk. Hypothekarbank Lenzburg AG is currently generating about 0.01 per unit of risk. If you would invest 13,300 in Procimmo Real Estate on September 2, 2024 and sell it today you would earn a total of 2,150 from holding Procimmo Real Estate or generate 16.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.78% |
| Values | Daily Returns |
Procimmo Real Estate vs. Hypothekarbank Lenzburg AG
Performance |
| Timeline |
| Procimmo Real Estate |
| Hypothekarbank Lenzburg |
Procimmo Real and Hypothekarbank Lenzburg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procimmo Real and Hypothekarbank Lenzburg
The main advantage of trading using opposite Procimmo Real and Hypothekarbank Lenzburg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procimmo Real position performs unexpectedly, Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg will offset losses from the drop in Hypothekarbank Lenzburg's long position.| Procimmo Real vs. SPDR Dow Jones | Procimmo Real vs. Baloise Holding AG | Procimmo Real vs. Autoneum Holding AG | Procimmo Real vs. Banque Cantonale du |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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