Correlation Between Swiss Leader and Interroll Holding
Can any of the company-specific risk be diversified away by investing in both Swiss Leader and Interroll 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 Interroll 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 Interroll Holding AG, you can compare the effects of market volatilities on Swiss Leader and Interroll 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 Interroll Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and Interroll Holding.
Diversification Opportunities for Swiss Leader and Interroll Holding
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swiss and Interroll is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and Interroll Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interroll Holding 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 Interroll Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interroll Holding has no effect on the direction of Swiss Leader i.e., Swiss Leader and Interroll Holding go up and down completely randomly.
Pair Corralation between Swiss Leader and Interroll Holding
Assuming the 90 days trading horizon Swiss Leader Price is expected to generate 0.47 times more return on investment than Interroll Holding. However, Swiss Leader Price is 2.11 times less risky than Interroll Holding. It trades about 0.03 of its potential returns per unit of risk. Interroll Holding AG is currently generating about -0.11 per unit of risk. If you would invest 192,731 in Swiss Leader Price on September 1, 2024 and sell it today you would earn a total of 1,024 from holding Swiss Leader Price or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Swiss Leader Price vs. Interroll Holding AG
Performance |
| Timeline |
Swiss Leader and Interroll Holding Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
Interroll Holding AG
Pair trading matchups for Interroll Holding
Pair Trading with Swiss Leader and Interroll Holding
The main advantage of trading using opposite Swiss Leader and Interroll Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader position performs unexpectedly, Interroll 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 Interroll Holding will offset losses from the drop in Interroll Holding's long position.| Swiss Leader vs. Graubuendner Kantonalbank | Swiss Leader vs. Thurgauer Kantonalbank | Swiss Leader vs. mobilezone ag | Swiss Leader vs. Zurich Insurance Group |
| Interroll Holding vs. Belimo Holding | Interroll Holding vs. Bachem Holding AG | Interroll Holding vs. VAT Group AG | Interroll Holding vs. Kardex |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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