Correlation Between Schindler and Interroll Holding
Can any of the company-specific risk be diversified away by investing in both Schindler and Interroll Holding 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 and Interroll Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schindler Ps and Interroll Holding AG, you can compare the effects of market volatilities on Schindler and Interroll Holding 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 with a short position of Interroll Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schindler and Interroll Holding.
Diversification Opportunities for Schindler and Interroll Holding
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Schindler and Interroll is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Schindler Ps and Interroll Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interroll Holding and Schindler 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 Ps are associated (or correlated) with Interroll Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interroll Holding has no effect on the direction of Schindler i.e., Schindler and Interroll Holding go up and down completely randomly.
Pair Corralation between Schindler and Interroll Holding
Assuming the 90 days trading horizon Schindler Ps is expected to generate 0.65 times more return on investment than Interroll Holding. However, Schindler Ps is 1.55 times less risky than Interroll Holding. It trades about 0.07 of its potential returns per unit of risk. Interroll Holding AG is currently generating about 0.01 per unit of risk. If you would invest 17,315 in Schindler Ps on August 28, 2024 and sell it today you would earn a total of 8,325 from holding Schindler Ps or generate 48.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schindler Ps vs. Interroll Holding AG
Performance |
| Timeline |
| Schindler Ps |
| Interroll Holding |
Schindler and Interroll Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schindler and Interroll Holding
The main advantage of trading using opposite Schindler and Interroll Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schindler position performs unexpectedly, Interroll Holding 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 Interroll Holding will offset losses from the drop in Interroll Holding's long position.The idea behind Schindler Ps and Interroll Holding AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Interroll Holding vs. Helvetia Holding AG | Interroll Holding vs. Swiss Life Holding | Interroll Holding vs. VAT 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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