Correlation Between Schweizer Electronic and SENERELECSPGDR REGS
Can any of the company-specific risk be diversified away by investing in both Schweizer Electronic and SENERELECSPGDR REGS 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 Schweizer Electronic and SENERELECSPGDR REGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweizer Electronic AG and SENERELECSPGDR REGS 1, you can compare the effects of market volatilities on Schweizer Electronic and SENERELECSPGDR REGS 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 Schweizer Electronic with a short position of SENERELECSPGDR REGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweizer Electronic and SENERELECSPGDR REGS.
Diversification Opportunities for Schweizer Electronic and SENERELECSPGDR REGS
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Schweizer and SENERELECSPGDR is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Schweizer Electronic AG and SENERELECSPGDR REGS 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENERELECSPGDR REGS and Schweizer Electronic 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 Schweizer Electronic AG are associated (or correlated) with SENERELECSPGDR REGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENERELECSPGDR REGS has no effect on the direction of Schweizer Electronic i.e., Schweizer Electronic and SENERELECSPGDR REGS go up and down completely randomly.
Pair Corralation between Schweizer Electronic and SENERELECSPGDR REGS
Assuming the 90 days horizon Schweizer Electronic AG is expected to under-perform the SENERELECSPGDR REGS. In addition to that, Schweizer Electronic is 2.43 times more volatile than SENERELECSPGDR REGS 1. It trades about -0.14 of its total potential returns per unit of risk. SENERELECSPGDR REGS 1 is currently generating about -0.08 per unit of volatility. If you would invest 1,150 in SENERELECSPGDR REGS 1 on September 13, 2024 and sell it today you would lose (50.00) from holding SENERELECSPGDR REGS 1 or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Schweizer Electronic AG vs. SENERELECSPGDR REGS 1
Performance |
| Timeline |
| Schweizer Electronic |
| SENERELECSPGDR REGS |
Schweizer Electronic and SENERELECSPGDR REGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweizer Electronic and SENERELECSPGDR REGS
The main advantage of trading using opposite Schweizer Electronic and SENERELECSPGDR REGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweizer Electronic position performs unexpectedly, SENERELECSPGDR REGS 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 SENERELECSPGDR REGS will offset losses from the drop in SENERELECSPGDR REGS's long position.| Schweizer Electronic vs. Benchmark Electronics | Schweizer Electronic vs. Superior Plus Corp | Schweizer Electronic vs. SIVERS SEMICONDUCTORS AB | Schweizer Electronic vs. Norsk Hydro ASA |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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