Correlation Between Schindler Holding and Chocoladefabriken
Can any of the company-specific risk be diversified away by investing in both Schindler Holding and Chocoladefabriken 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 Schindler Holding and Chocoladefabriken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schindler Holding AG and Chocoladefabriken Lindt Spruengli, you can compare the effects of market volatilities on Schindler Holding and Chocoladefabriken 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 Schindler Holding with a short position of Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schindler Holding and Chocoladefabriken.
Diversification Opportunities for Schindler Holding and Chocoladefabriken
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schindler and Chocoladefabriken is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Schindler Holding AG and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt and Schindler 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 Schindler Holding AG are associated (or correlated) with Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Schindler Holding i.e., Schindler Holding and Chocoladefabriken go up and down completely randomly.
Pair Corralation between Schindler Holding and Chocoladefabriken
Assuming the 90 days trading horizon Schindler Holding AG is expected to generate 1.14 times more return on investment than Chocoladefabriken. However, Schindler Holding is 1.14 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about 0.08 of its potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about 0.02 per unit of risk. If you would invest 15,813 in Schindler Holding AG on September 12, 2024 and sell it today you would earn a total of 9,487 from holding Schindler Holding AG or generate 59.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schindler Holding AG vs. Chocoladefabriken Lindt Spruen
Performance |
| Timeline |
| Schindler Holding |
| Chocoladefabriken Lindt |
Schindler Holding and Chocoladefabriken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schindler Holding and Chocoladefabriken
The main advantage of trading using opposite Schindler Holding and Chocoladefabriken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schindler Holding position performs unexpectedly, Chocoladefabriken 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 Chocoladefabriken will offset losses from the drop in Chocoladefabriken's long position.| Schindler Holding vs. Geberit AG | Schindler Holding vs. Givaudan SA | Schindler Holding vs. SGS SA | Schindler Holding vs. Straumann Holding AG |
| Chocoladefabriken vs. Chocoladefabriken Lindt Spruengli | Chocoladefabriken vs. Barry Callebaut AG | Chocoladefabriken vs. SPDR Dow Jones | Chocoladefabriken vs. Baloise Holding 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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