Correlation Between Smurfit Kappa and Fielmann Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Smurfit Kappa and Fielmann 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 Smurfit Kappa and Fielmann Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smurfit Kappa Group and Fielmann Aktiengesellschaft, you can compare the effects of market volatilities on Smurfit Kappa and Fielmann 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 Smurfit Kappa with a short position of Fielmann Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smurfit Kappa and Fielmann Aktiengesellscha.
Diversification Opportunities for Smurfit Kappa and Fielmann Aktiengesellscha
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Smurfit and Fielmann is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Smurfit Kappa Group and Fielmann Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fielmann Aktiengesellscha and Smurfit Kappa 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 Smurfit Kappa Group are associated (or correlated) with Fielmann Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fielmann Aktiengesellscha has no effect on the direction of Smurfit Kappa i.e., Smurfit Kappa and Fielmann Aktiengesellscha go up and down completely randomly.
Pair Corralation between Smurfit Kappa and Fielmann Aktiengesellscha
Assuming the 90 days horizon Smurfit Kappa Group is expected to generate 2.25 times more return on investment than Fielmann Aktiengesellscha. However, Smurfit Kappa is 2.25 times more volatile than Fielmann Aktiengesellschaft. It trades about 0.3 of its potential returns per unit of risk. Fielmann Aktiengesellschaft is currently generating about -0.44 per unit of risk. If you would invest 4,158 in Smurfit Kappa Group on August 29, 2024 and sell it today you would earn a total of 1,222 from holding Smurfit Kappa Group or generate 29.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Smurfit Kappa Group vs. Fielmann Aktiengesellschaft
Performance |
| Timeline |
| Smurfit Kappa Group |
| Fielmann Aktiengesellscha |
Smurfit Kappa and Fielmann Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smurfit Kappa and Fielmann Aktiengesellscha
The main advantage of trading using opposite Smurfit Kappa and Fielmann Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smurfit Kappa position performs unexpectedly, Fielmann 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 Fielmann Aktiengesellscha will offset losses from the drop in Fielmann Aktiengesellscha's long position.| Smurfit Kappa vs. Amcor plc | Smurfit Kappa vs. Packaging of | Smurfit Kappa vs. CCL Industries | Smurfit Kappa vs. AptarGroup |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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