Correlation Between Swiss Life and Schlatter Industries
Can any of the company-specific risk be diversified away by investing in both Swiss Life and Schlatter Industries 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 Schlatter Industries 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 Schlatter Industries AG, you can compare the effects of market volatilities on Swiss Life and Schlatter Industries 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 Schlatter Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Life and Schlatter Industries.
Diversification Opportunities for Swiss Life and Schlatter Industries
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Swiss and Schlatter is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Life Holding and Schlatter Industries AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schlatter Industries 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 Schlatter Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schlatter Industries has no effect on the direction of Swiss Life i.e., Swiss Life and Schlatter Industries go up and down completely randomly.
Pair Corralation between Swiss Life and Schlatter Industries
Assuming the 90 days trading horizon Swiss Life Holding is expected to generate 0.3 times more return on investment than Schlatter Industries. However, Swiss Life Holding is 3.35 times less risky than Schlatter Industries. It trades about 0.13 of its potential returns per unit of risk. Schlatter Industries AG is currently generating about 0.02 per unit of risk. If you would invest 55,491 in Swiss Life Holding on August 25, 2024 and sell it today you would earn a total of 17,869 from holding Swiss Life Holding or generate 32.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.91% |
| Values | Daily Returns |
Swiss Life Holding vs. Schlatter Industries AG
Performance |
| Timeline |
| Swiss Life Holding |
| Schlatter Industries |
Swiss Life and Schlatter Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Life and Schlatter Industries
The main advantage of trading using opposite Swiss Life and Schlatter Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Life position performs unexpectedly, Schlatter Industries 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 Schlatter Industries will offset losses from the drop in Schlatter Industries' 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 |
| Schlatter Industries vs. OC Oerlikon Corp | Schlatter Industries vs. Helvetia Holding AG | Schlatter Industries vs. Swiss Life Holding | Schlatter Industries vs. VAT 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |