Correlation Between Schoeller Bleckmann and Josef Manner
Can any of the company-specific risk be diversified away by investing in both Schoeller Bleckmann and Josef Manner 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 Schoeller Bleckmann and Josef Manner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schoeller Bleckmann Oilfield Equipment and Josef Manner Comp, you can compare the effects of market volatilities on Schoeller Bleckmann and Josef Manner 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 Schoeller Bleckmann with a short position of Josef Manner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schoeller Bleckmann and Josef Manner.
Diversification Opportunities for Schoeller Bleckmann and Josef Manner
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Schoeller and Josef is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Schoeller Bleckmann Oilfield E and Josef Manner Comp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Josef Manner Comp and Schoeller Bleckmann 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 Schoeller Bleckmann Oilfield Equipment are associated (or correlated) with Josef Manner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Josef Manner Comp has no effect on the direction of Schoeller Bleckmann i.e., Schoeller Bleckmann and Josef Manner go up and down completely randomly.
Pair Corralation between Schoeller Bleckmann and Josef Manner
Assuming the 90 days trading horizon Schoeller Bleckmann Oilfield Equipment is expected to generate 1.6 times more return on investment than Josef Manner. However, Schoeller Bleckmann is 1.6 times more volatile than Josef Manner Comp. It trades about 0.06 of its potential returns per unit of risk. Josef Manner Comp is currently generating about -0.05 per unit of risk. If you would invest 2,780 in Schoeller Bleckmann Oilfield Equipment on August 30, 2024 and sell it today you would earn a total of 75.00 from holding Schoeller Bleckmann Oilfield Equipment or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schoeller Bleckmann Oilfield E vs. Josef Manner Comp
Performance |
| Timeline |
| Schoeller Bleckmann |
| Josef Manner Comp |
Schoeller Bleckmann and Josef Manner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schoeller Bleckmann and Josef Manner
The main advantage of trading using opposite Schoeller Bleckmann and Josef Manner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schoeller Bleckmann position performs unexpectedly, Josef Manner 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 Josef Manner will offset losses from the drop in Josef Manner's long position.| Schoeller Bleckmann vs. Voestalpine AG | Schoeller Bleckmann vs. Andritz AG | Schoeller Bleckmann vs. Wienerberger AG | Schoeller Bleckmann vs. OMV Aktiengesellschaft |
| Josef Manner vs. EVN AG | Josef Manner vs. Oesterr Post AG | Josef Manner vs. Kapsch Traffic | Josef Manner vs. VERBUND 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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