Correlation Between Siegfried Holding and Tecan Group
Can any of the company-specific risk be diversified away by investing in both Siegfried Holding and Tecan 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 Siegfried Holding and Tecan Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siegfried Holding and Tecan Group AG, you can compare the effects of market volatilities on Siegfried Holding and Tecan 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 Siegfried Holding with a short position of Tecan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siegfried Holding and Tecan Group.
Diversification Opportunities for Siegfried Holding and Tecan Group
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siegfried and Tecan is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Siegfried Holding and Tecan Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecan Group 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 Tecan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecan Group AG has no effect on the direction of Siegfried Holding i.e., Siegfried Holding and Tecan Group go up and down completely randomly.
Pair Corralation between Siegfried Holding and Tecan Group
Assuming the 90 days trading horizon Siegfried Holding is expected to generate 1.44 times more return on investment than Tecan Group. However, Siegfried Holding is 1.44 times more volatile than Tecan Group AG. It trades about -0.09 of its potential returns per unit of risk. Tecan Group AG is currently generating about -0.24 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siegfried Holding vs. Tecan Group AG
Performance |
| Timeline |
| Siegfried Holding |
| Tecan Group AG |
Siegfried Holding and Tecan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siegfried Holding and Tecan Group
The main advantage of trading using opposite Siegfried Holding and Tecan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siegfried Holding position performs unexpectedly, Tecan 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 Tecan Group will offset losses from the drop in Tecan Group'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 |
| Tecan Group vs. Straumann Holding AG | Tecan Group vs. Sonova H Ag | Tecan Group vs. VAT Group AG | Tecan Group vs. Lonza 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |