Correlation Between Swiss Life and OC Oerlikon
Can any of the company-specific risk be diversified away by investing in both Swiss Life and OC Oerlikon 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 Swiss Life and OC Oerlikon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Life Holding and OC Oerlikon Corp, you can compare the effects of market volatilities on Swiss Life and OC Oerlikon 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 Swiss Life with a short position of OC Oerlikon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Life and OC Oerlikon.
Diversification Opportunities for Swiss Life and OC Oerlikon
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Swiss and OERL is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Life Holding and OC Oerlikon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OC Oerlikon Corp and Swiss Life 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 Swiss Life Holding are associated (or correlated) with OC Oerlikon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OC Oerlikon Corp has no effect on the direction of Swiss Life i.e., Swiss Life and OC Oerlikon go up and down completely randomly.
Pair Corralation between Swiss Life and OC Oerlikon
Assuming the 90 days trading horizon Swiss Life Holding is expected to generate 0.61 times more return on investment than OC Oerlikon. However, Swiss Life Holding is 1.65 times less risky than OC Oerlikon. It trades about 0.09 of its potential returns per unit of risk. OC Oerlikon Corp is currently generating about -0.04 per unit of risk. If you would invest 45,675 in Swiss Life Holding on August 25, 2024 and sell it today you would earn a total of 27,685 from holding Swiss Life Holding or generate 60.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Life Holding vs. OC Oerlikon Corp
Performance |
| Timeline |
| Swiss Life Holding |
| OC Oerlikon Corp |
Swiss Life and OC Oerlikon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Life and OC Oerlikon
The main advantage of trading using opposite Swiss Life and OC Oerlikon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Life position performs unexpectedly, OC Oerlikon 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 OC Oerlikon will offset losses from the drop in OC Oerlikon's long position.| Swiss Life vs. Zurich Insurance Group | Swiss Life vs. Swiss Re AG | Swiss Life vs. Swisscom AG | Swiss Life vs. Lonza Group AG |
| OC Oerlikon vs. Sulzer AG | OC Oerlikon vs. Helvetia Holding AG | OC Oerlikon vs. Swiss Life Holding | OC Oerlikon vs. Adecco 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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