Correlation Between Swiss Leader and Groupe Minoteries
Can any of the company-specific risk be diversified away by investing in both Swiss Leader and Groupe Minoteries 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 Groupe Minoteries 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 Groupe Minoteries SA, you can compare the effects of market volatilities on Swiss Leader and Groupe Minoteries 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 Groupe Minoteries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and Groupe Minoteries.
Diversification Opportunities for Swiss Leader and Groupe Minoteries
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swiss and Groupe is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and Groupe Minoteries SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Minoteries 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 Groupe Minoteries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Minoteries has no effect on the direction of Swiss Leader i.e., Swiss Leader and Groupe Minoteries go up and down completely randomly.
Pair Corralation between Swiss Leader and Groupe Minoteries
Assuming the 90 days trading horizon Swiss Leader Price is expected to generate 0.35 times more return on investment than Groupe Minoteries. However, Swiss Leader Price is 2.85 times less risky than Groupe Minoteries. It trades about 0.04 of its potential returns per unit of risk. Groupe Minoteries SA is currently generating about 0.0 per unit of risk. If you would invest 170,804 in Swiss Leader Price on September 3, 2024 and sell it today you would earn a total of 23,252 from holding Swiss Leader Price or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.35% |
| Values | Daily Returns |
Swiss Leader Price vs. Groupe Minoteries SA
Performance |
| Timeline |
Swiss Leader and Groupe Minoteries Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
Groupe Minoteries SA
Pair trading matchups for Groupe Minoteries
Pair Trading with Swiss Leader and Groupe Minoteries
The main advantage of trading using opposite Swiss Leader and Groupe Minoteries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader position performs unexpectedly, Groupe Minoteries 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 Groupe Minoteries will offset losses from the drop in Groupe Minoteries' long position.| Swiss Leader vs. VP Bank AG | Swiss Leader vs. Basler Kantonalbank | Swiss Leader vs. Thurgauer Kantonalbank | Swiss Leader vs. Liechtensteinische Landesbank AG |
| Groupe Minoteries vs. Carlo Gavazzi Holding | Groupe Minoteries vs. Emmi AG | Groupe Minoteries vs. Cicor Technologies | Groupe Minoteries vs. Lem Holding SA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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