Correlation Between Rockwell Automation and Schindler Holding
Can any of the company-specific risk be diversified away by investing in both Rockwell Automation and Schindler 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 Rockwell Automation and Schindler Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rockwell Automation and Schindler Holding AG, you can compare the effects of market volatilities on Rockwell Automation and Schindler 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 Rockwell Automation with a short position of Schindler Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rockwell Automation and Schindler Holding.
Diversification Opportunities for Rockwell Automation and Schindler Holding
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rockwell and Schindler is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Rockwell Automation and Schindler Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schindler Holding and Rockwell Automation 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 Rockwell Automation are associated (or correlated) with Schindler Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schindler Holding has no effect on the direction of Rockwell Automation i.e., Rockwell Automation and Schindler Holding go up and down completely randomly.
Pair Corralation between Rockwell Automation and Schindler Holding
Considering the 90-day investment horizon Rockwell Automation is expected to generate 1.17 times more return on investment than Schindler Holding. However, Rockwell Automation is 1.17 times more volatile than Schindler Holding AG. It trades about 0.07 of its potential returns per unit of risk. Schindler Holding AG is currently generating about 0.01 per unit of risk. If you would invest 25,554 in Rockwell Automation on September 1, 2024 and sell it today you would earn a total of 3,960 from holding Rockwell Automation or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Rockwell Automation vs. Schindler Holding AG
Performance |
| Timeline |
| Rockwell Automation |
| Schindler Holding |
Rockwell Automation and Schindler Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rockwell Automation and Schindler Holding
The main advantage of trading using opposite Rockwell Automation and Schindler Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rockwell Automation position performs unexpectedly, Schindler 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 Schindler Holding will offset losses from the drop in Schindler Holding's long position.| Rockwell Automation vs. Dover | Rockwell Automation vs. Illinois Tool Works | Rockwell Automation vs. Ingersoll Rand | Rockwell Automation vs. Eaton PLC |
| Schindler Holding vs. GE Aerospace | Schindler Holding vs. Eaton PLC | Schindler Holding vs. Siemens AG Class | Schindler Holding vs. Parker Hannifin |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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