Correlation Between Siegfried Holding and Also Holding
Can any of the company-specific risk be diversified away by investing in both Siegfried Holding and Also 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 Siegfried Holding and Also Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siegfried Holding and Also Holding AG, you can compare the effects of market volatilities on Siegfried Holding and Also 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 Siegfried Holding with a short position of Also Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siegfried Holding and Also Holding.
Diversification Opportunities for Siegfried Holding and Also Holding
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siegfried and Also is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Siegfried Holding and Also Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Also Holding AG and Siegfried 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 Siegfried Holding are associated (or correlated) with Also Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Also Holding AG has no effect on the direction of Siegfried Holding i.e., Siegfried Holding and Also Holding go up and down completely randomly.
Pair Corralation between Siegfried Holding and Also Holding
Assuming the 90 days trading horizon Siegfried Holding is expected to generate 1.21 times more return on investment than Also Holding. However, Siegfried Holding is 1.21 times more volatile than Also Holding AG. It trades about -0.09 of its potential returns per unit of risk. Also Holding AG is currently generating about -0.2 per unit of risk. If you would invest 114,200 in Siegfried Holding on August 29, 2024 and sell it today you would lose (3,800) from holding Siegfried Holding or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siegfried Holding vs. Also Holding AG
Performance |
| Timeline |
| Siegfried Holding |
| Also Holding AG |
Siegfried Holding and Also Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siegfried Holding and Also Holding
The main advantage of trading using opposite Siegfried Holding and Also Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siegfried Holding position performs unexpectedly, Also 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 Also Holding will offset losses from the drop in Also Holding's long position.| Siegfried Holding vs. Bachem Holding AG | Siegfried Holding vs. VAT Group AG | Siegfried Holding vs. Tecan Group AG | Siegfried Holding vs. Straumann Holding AG |
| Also Holding vs. Hubersuhner AG | Also Holding vs. Implenia AG | Also Holding vs. Mikron Holding AG | Also Holding vs. Bucher Industries 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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