Correlation Between Schindler and Komax Holding
Can any of the company-specific risk be diversified away by investing in both Schindler and Komax 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 Komax 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 Komax Holding AG, you can compare the effects of market volatilities on Schindler and Komax 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 Komax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schindler and Komax Holding.
Diversification Opportunities for Schindler and Komax Holding
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schindler and Komax is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Schindler Ps and Komax Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komax Holding AG 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 Komax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komax Holding AG has no effect on the direction of Schindler i.e., Schindler and Komax Holding go up and down completely randomly.
Pair Corralation between Schindler and Komax Holding
Assuming the 90 days trading horizon Schindler Ps is expected to generate 0.62 times more return on investment than Komax Holding. However, Schindler Ps is 1.61 times less risky than Komax Holding. It trades about 0.05 of its potential returns per unit of risk. Komax Holding AG is currently generating about -0.09 per unit of risk. If you would invest 25,400 in Schindler Ps on August 28, 2024 and sell it today you would earn a total of 240.00 from holding Schindler Ps or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Schindler Ps vs. Komax Holding AG
Performance |
| Timeline |
| Schindler Ps |
| Komax Holding AG |
Schindler and Komax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schindler and Komax Holding
The main advantage of trading using opposite Schindler and Komax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schindler position performs unexpectedly, Komax 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 Komax Holding will offset losses from the drop in Komax Holding's long position.The idea behind Schindler Ps and Komax 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.| Komax Holding vs. Helvetia Holding AG | Komax Holding vs. Swiss Life Holding | Komax 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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