Correlation Between Schindler Holding and Dear Cashmere
Can any of the company-specific risk be diversified away by investing in both Schindler Holding and Dear Cashmere 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 Dear Cashmere 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 Dear Cashmere Holding, you can compare the effects of market volatilities on Schindler Holding and Dear Cashmere 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 Dear Cashmere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schindler Holding and Dear Cashmere.
Diversification Opportunities for Schindler Holding and Dear Cashmere
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Schindler and Dear is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Schindler Holding AG and Dear Cashmere Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dear Cashmere 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 Dear Cashmere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dear Cashmere Holding has no effect on the direction of Schindler Holding i.e., Schindler Holding and Dear Cashmere go up and down completely randomly.
Pair Corralation between Schindler Holding and Dear Cashmere
Assuming the 90 days horizon Schindler Holding is expected to generate 17.46 times less return on investment than Dear Cashmere. But when comparing it to its historical volatility, Schindler Holding AG is 21.34 times less risky than Dear Cashmere. It trades about 0.06 of its potential returns per unit of risk. Dear Cashmere Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Dear Cashmere Holding on September 5, 2024 and sell it today you would lose (2.00) from holding Dear Cashmere Holding or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.87% |
| Values | Daily Returns |
Schindler Holding AG vs. Dear Cashmere Holding
Performance |
| Timeline |
| Schindler Holding |
| Dear Cashmere Holding |
Schindler Holding and Dear Cashmere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schindler Holding and Dear Cashmere
The main advantage of trading using opposite Schindler Holding and Dear Cashmere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schindler Holding position performs unexpectedly, Dear Cashmere 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 Dear Cashmere will offset losses from the drop in Dear Cashmere's long position.| Schindler Holding vs. Dear Cashmere Holding | Schindler Holding vs. Goff Corp | Schindler Holding vs. Wialan Technologies | Schindler Holding vs. Cgrowth Capital |
| Dear Cashmere vs. One World Universe | Dear Cashmere vs. All American Pet | Dear Cashmere vs. Ilustrato Pictures | Dear Cashmere vs. Quality Industrial Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |