Correlation Between Schindler Holding and Straumann Holding
Can any of the company-specific risk be diversified away by investing in both Schindler Holding and Straumann 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 Holding and Straumann Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schindler Holding AG and Straumann Holding AG, you can compare the effects of market volatilities on Schindler Holding and Straumann 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 Holding with a short position of Straumann Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schindler Holding and Straumann Holding.
Diversification Opportunities for Schindler Holding and Straumann Holding
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Schindler and Straumann is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Schindler Holding AG and Straumann Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Straumann Holding and Schindler 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 Schindler Holding AG are associated (or correlated) with Straumann Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straumann Holding has no effect on the direction of Schindler Holding i.e., Schindler Holding and Straumann Holding go up and down completely randomly.
Pair Corralation between Schindler Holding and Straumann Holding
Assuming the 90 days horizon Schindler Holding AG is expected to generate 0.28 times more return on investment than Straumann Holding. However, Schindler Holding AG is 3.58 times less risky than Straumann Holding. It trades about 0.06 of its potential returns per unit of risk. Straumann Holding AG is currently generating about 0.01 per unit of risk. If you would invest 23,550 in Schindler Holding AG on November 9, 2024 and sell it today you would earn a total of 3,800 from holding Schindler Holding AG or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.88% |
| Values | Daily Returns |
Schindler Holding AG vs. Straumann Holding AG
Performance |
| Timeline |
| Schindler Holding |
| Straumann Holding |
Schindler Holding and Straumann Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schindler Holding and Straumann Holding
The main advantage of trading using opposite Schindler Holding and Straumann Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schindler Holding position performs unexpectedly, Straumann 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 Straumann Holding will offset losses from the drop in Straumann Holding's long position.| Schindler Holding vs. SMC Corp Japan | Schindler Holding vs. Schneider Electric SE | Schindler Holding vs. Atlas Copco AB | Schindler Holding vs. Fanuc |
| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Straumann Holding AG | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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