Correlation Between Swiss Leader and Calida Holding
Can any of the company-specific risk be diversified away by investing in both Swiss Leader and Calida 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 Swiss Leader and Calida Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Leader Price and Calida Holding AG, you can compare the effects of market volatilities on Swiss Leader and Calida 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 Swiss Leader with a short position of Calida Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and Calida Holding.
Diversification Opportunities for Swiss Leader and Calida Holding
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swiss and Calida is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and Calida Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calida Holding AG and Swiss Leader 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 Leader Price are associated (or correlated) with Calida Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calida Holding AG has no effect on the direction of Swiss Leader i.e., Swiss Leader and Calida Holding go up and down completely randomly.
Pair Corralation between Swiss Leader and Calida Holding
Assuming the 90 days trading horizon Swiss Leader Price is expected to generate 0.42 times more return on investment than Calida Holding. However, Swiss Leader Price is 2.4 times less risky than Calida Holding. It trades about 0.04 of its potential returns per unit of risk. Calida Holding AG is currently generating about -0.06 per unit of risk. If you would invest 170,510 in Swiss Leader Price on September 4, 2024 and sell it today you would earn a total of 24,545 from holding Swiss Leader Price or generate 14.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Swiss Leader Price vs. Calida Holding AG
Performance |
| Timeline |
Swiss Leader and Calida Holding Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
Calida Holding AG
Pair trading matchups for Calida Holding
Pair Trading with Swiss Leader and Calida Holding
The main advantage of trading using opposite Swiss Leader and Calida Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader position performs unexpectedly, Calida 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 Calida Holding will offset losses from the drop in Calida Holding's long position.| Swiss Leader vs. St Galler Kantonalbank | Swiss Leader vs. Glarner Kantonalbank | Swiss Leader vs. Schweiter Technologies AG | Swiss Leader vs. Metall Zug AG |
| Calida Holding vs. Swatch Group AG | Calida Holding vs. Helvetia Holding AG | Calida Holding vs. Emmi AG | Calida Holding vs. Swissquote Group Holding |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |