Correlation Between Semperit Aktiengesellscha and Lenzing Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Semperit Aktiengesellscha and Lenzing Aktiengesellscha 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 Semperit Aktiengesellscha and Lenzing Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semperit Aktiengesellschaft Holding and Lenzing Aktiengesellschaft, you can compare the effects of market volatilities on Semperit Aktiengesellscha and Lenzing Aktiengesellscha 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 Semperit Aktiengesellscha with a short position of Lenzing Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semperit Aktiengesellscha and Lenzing Aktiengesellscha.
Diversification Opportunities for Semperit Aktiengesellscha and Lenzing Aktiengesellscha
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Semperit and Lenzing is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Semperit Aktiengesellschaft Ho and Lenzing Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenzing Aktiengesellscha and Semperit Aktiengesellscha 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 Semperit Aktiengesellschaft Holding are associated (or correlated) with Lenzing Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenzing Aktiengesellscha has no effect on the direction of Semperit Aktiengesellscha i.e., Semperit Aktiengesellscha and Lenzing Aktiengesellscha go up and down completely randomly.
Pair Corralation between Semperit Aktiengesellscha and Lenzing Aktiengesellscha
Assuming the 90 days trading horizon Semperit Aktiengesellschaft Holding is expected to generate 0.67 times more return on investment than Lenzing Aktiengesellscha. However, Semperit Aktiengesellschaft Holding is 1.49 times less risky than Lenzing Aktiengesellscha. It trades about 0.22 of its potential returns per unit of risk. Lenzing Aktiengesellschaft is currently generating about -0.06 per unit of risk. If you would invest 1,132 in Semperit Aktiengesellschaft Holding on September 18, 2024 and sell it today you would earn a total of 58.00 from holding Semperit Aktiengesellschaft Holding or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semperit Aktiengesellschaft Ho vs. Lenzing Aktiengesellschaft
Performance |
| Timeline |
| Semperit Aktiengesellscha |
| Lenzing Aktiengesellscha |
Semperit Aktiengesellscha and Lenzing Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semperit Aktiengesellscha and Lenzing Aktiengesellscha
The main advantage of trading using opposite Semperit Aktiengesellscha and Lenzing Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semperit Aktiengesellscha position performs unexpectedly, Lenzing Aktiengesellscha 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 Lenzing Aktiengesellscha will offset losses from the drop in Lenzing Aktiengesellscha's long position.| Semperit Aktiengesellscha vs. Wienerberger AG | Semperit Aktiengesellscha vs. Andritz AG | Semperit Aktiengesellscha vs. Lenzing Aktiengesellschaft | Semperit Aktiengesellscha vs. Voestalpine AG |
| Lenzing Aktiengesellscha vs. Voestalpine AG | Lenzing Aktiengesellscha vs. Andritz AG | Lenzing Aktiengesellscha vs. Wienerberger AG | Lenzing Aktiengesellscha vs. OMV Aktiengesellschaft |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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