Correlation Between Straumann Holding and XL Axiata
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and XL Axiata 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 XL Axiata 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 XL Axiata Tbk, you can compare the effects of market volatilities on Straumann Holding and XL Axiata 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 XL Axiata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and XL Axiata.
Diversification Opportunities for Straumann Holding and XL Axiata
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Straumann and PTXKY is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and XL Axiata Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XL Axiata Tbk 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 XL Axiata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XL Axiata Tbk has no effect on the direction of Straumann Holding i.e., Straumann Holding and XL Axiata go up and down completely randomly.
Pair Corralation between Straumann Holding and XL Axiata
Assuming the 90 days horizon Straumann Holding AG is expected to under-perform the XL Axiata. But the pink sheet apears to be less risky and, when comparing its historical volatility, Straumann Holding AG is 1.11 times less risky than XL Axiata. The pink sheet trades about -0.15 of its potential returns per unit of risk. The XL Axiata Tbk is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 286.00 in XL Axiata Tbk on August 27, 2024 and sell it today you would lose (30.00) from holding XL Axiata Tbk or give up 10.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Straumann Holding AG vs. XL Axiata Tbk
Performance |
| Timeline |
| Straumann Holding |
| XL Axiata Tbk |
Straumann Holding and XL Axiata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and XL Axiata
The main advantage of trading using opposite Straumann Holding and XL Axiata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, XL Axiata 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 XL Axiata will offset losses from the drop in XL Axiata's long position.| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Straumann Holding AG | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA |
| XL Axiata vs. Vodafone Group PLC | XL Axiata vs. KDDI Corp | XL Axiata vs. Amrica Mvil, SAB | XL Axiata vs. Singapore Telecommunications Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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