Correlation Between Straumann Holding and GlucoTrack
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and GlucoTrack 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 GlucoTrack 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 GlucoTrack, you can compare the effects of market volatilities on Straumann Holding and GlucoTrack 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 GlucoTrack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and GlucoTrack.
Diversification Opportunities for Straumann Holding and GlucoTrack
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Straumann and GlucoTrack is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and GlucoTrack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlucoTrack 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 GlucoTrack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlucoTrack has no effect on the direction of Straumann Holding i.e., Straumann Holding and GlucoTrack go up and down completely randomly.
Pair Corralation between Straumann Holding and GlucoTrack
Assuming the 90 days horizon Straumann Holding AG is expected to generate 0.21 times more return on investment than GlucoTrack. However, Straumann Holding AG is 4.73 times less risky than GlucoTrack. It trades about -0.15 of its potential returns per unit of risk. GlucoTrack is currently generating about -0.26 per unit of risk. If you would invest 14,307 in Straumann Holding AG on August 27, 2024 and sell it today you would lose (2,041) from holding Straumann Holding AG or give up 14.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Straumann Holding AG vs. GlucoTrack
Performance |
| Timeline |
| Straumann Holding |
| GlucoTrack |
Straumann Holding and GlucoTrack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and GlucoTrack
The main advantage of trading using opposite Straumann Holding and GlucoTrack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, GlucoTrack 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 GlucoTrack will offset losses from the drop in GlucoTrack's long position.| Straumann Holding vs. GlucoTrack | Straumann Holding vs. Sharps Technology | Straumann Holding vs. Utah Medical Products | Straumann Holding vs. Innovative Eyewear |
| GlucoTrack vs. Heartbeam | GlucoTrack vs. EUDA Health Holdings | GlucoTrack vs. Nutex Health | GlucoTrack vs. Healthcare Triangle |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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