Correlation Between Straumann Holding and Ansell
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and Ansell 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 Straumann Holding and Ansell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and Ansell Limited, you can compare the effects of market volatilities on Straumann Holding and Ansell 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 Straumann Holding with a short position of Ansell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and Ansell.
Diversification Opportunities for Straumann Holding and Ansell
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Straumann and Ansell is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and Ansell Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ansell Limited and Straumann 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 Straumann Holding AG are associated (or correlated) with Ansell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ansell Limited has no effect on the direction of Straumann Holding i.e., Straumann Holding and Ansell go up and down completely randomly.
Pair Corralation between Straumann Holding and Ansell
Assuming the 90 days horizon Straumann Holding AG is expected to under-perform the Ansell. In addition to that, Straumann Holding is 1.62 times more volatile than Ansell Limited. It trades about -0.04 of its total potential returns per unit of risk. Ansell Limited is currently generating about 0.17 per unit of volatility. If you would invest 1,583 in Ansell Limited on September 2, 2024 and sell it today you would earn a total of 497.00 from holding Ansell Limited or generate 31.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Straumann Holding AG vs. Ansell Limited
Performance |
| Timeline |
| Straumann Holding |
| Ansell Limited |
Straumann Holding and Ansell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and Ansell
The main advantage of trading using opposite Straumann Holding and Ansell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, Ansell 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 Ansell will offset losses from the drop in Ansell's long position.| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast A | Straumann Holding vs. Hoya Corp | Straumann Holding vs. Utah Medical Products |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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