Correlation Between Rieter Holding and Implenia
Can any of the company-specific risk be diversified away by investing in both Rieter Holding and Implenia 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 Rieter Holding and Implenia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rieter Holding AG and Implenia AG, you can compare the effects of market volatilities on Rieter Holding and Implenia 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 Rieter Holding with a short position of Implenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rieter Holding and Implenia.
Diversification Opportunities for Rieter Holding and Implenia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rieter and Implenia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rieter Holding AG and Implenia AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implenia AG and Rieter Holding 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 Rieter Holding AG are associated (or correlated) with Implenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implenia AG has no effect on the direction of Rieter Holding i.e., Rieter Holding and Implenia go up and down completely randomly.
Pair Corralation between Rieter Holding and Implenia
If you would invest 3,020 in Implenia AG on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Implenia AG or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Rieter Holding AG vs. Implenia AG
Performance |
| Timeline |
| Rieter Holding AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Implenia AG |
Rieter Holding and Implenia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rieter Holding and Implenia
The main advantage of trading using opposite Rieter Holding and Implenia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rieter Holding position performs unexpectedly, Implenia 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 Implenia will offset losses from the drop in Implenia's long position.| Rieter Holding vs. Sulzer AG | Rieter Holding vs. OC Oerlikon Corp | Rieter Holding vs. Bucher Industries AG | Rieter Holding vs. Komax Holding AG |
| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Stadler Rail 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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