Correlation Between Schindler Holding and Starrag Group
Can any of the company-specific risk be diversified away by investing in both Schindler Holding and Starrag Group 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 Starrag Group 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 Starrag Group Holding, you can compare the effects of market volatilities on Schindler Holding and Starrag Group 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 Starrag Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schindler Holding and Starrag Group.
Diversification Opportunities for Schindler Holding and Starrag Group
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schindler and Starrag is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Schindler Holding AG and Starrag Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starrag Group Holding 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 Starrag Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starrag Group Holding has no effect on the direction of Schindler Holding i.e., Schindler Holding and Starrag Group go up and down completely randomly.
Pair Corralation between Schindler Holding and Starrag Group
Assuming the 90 days trading horizon Schindler Holding AG is expected to generate 0.5 times more return on investment than Starrag Group. However, Schindler Holding AG is 2.01 times less risky than Starrag Group. It trades about 0.07 of its potential returns per unit of risk. Starrag Group Holding is currently generating about 0.0 per unit of risk. If you would invest 16,198 in Schindler Holding AG on August 28, 2024 and sell it today you would earn a total of 8,752 from holding Schindler Holding AG or generate 54.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
Schindler Holding AG vs. Starrag Group Holding
Performance |
| Timeline |
| Schindler Holding |
| Starrag Group Holding |
Schindler Holding and Starrag Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schindler Holding and Starrag Group
The main advantage of trading using opposite Schindler Holding and Starrag Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schindler Holding position performs unexpectedly, Starrag Group 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 Starrag Group will offset losses from the drop in Starrag Group's long position.| Schindler Holding vs. Geberit AG | Schindler Holding vs. Givaudan SA | Schindler Holding vs. SGS SA | Schindler Holding vs. Straumann Holding AG |
| Starrag Group vs. Carlo Gavazzi Holding | Starrag Group vs. Mikron Holding AG | Starrag Group vs. Valartis Group 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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