Correlation Between Swiss Leader and Ypsomed Holding
Can any of the company-specific risk be diversified away by investing in both Swiss Leader and Ypsomed 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 Ypsomed 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 Ypsomed Holding AG, you can compare the effects of market volatilities on Swiss Leader and Ypsomed 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 Ypsomed Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and Ypsomed Holding.
Diversification Opportunities for Swiss Leader and Ypsomed Holding
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swiss and Ypsomed is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and Ypsomed Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ypsomed 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 Ypsomed Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ypsomed Holding AG has no effect on the direction of Swiss Leader i.e., Swiss Leader and Ypsomed Holding go up and down completely randomly.
Pair Corralation between Swiss Leader and Ypsomed Holding
Assuming the 90 days trading horizon Swiss Leader Price is expected to generate 0.38 times more return on investment than Ypsomed Holding. However, Swiss Leader Price is 2.6 times less risky than Ypsomed Holding. It trades about -0.07 of its potential returns per unit of risk. Ypsomed Holding AG is currently generating about -0.13 per unit of risk. If you would invest 195,514 in Swiss Leader Price on August 31, 2024 and sell it today you would lose (2,584) from holding Swiss Leader Price or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Leader Price vs. Ypsomed Holding AG
Performance |
| Timeline |
Swiss Leader and Ypsomed Holding Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
Ypsomed Holding AG
Pair trading matchups for Ypsomed Holding
Pair Trading with Swiss Leader and Ypsomed Holding
The main advantage of trading using opposite Swiss Leader and Ypsomed Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader position performs unexpectedly, Ypsomed 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 Ypsomed Holding will offset losses from the drop in Ypsomed Holding's long position.| Swiss Leader vs. Graubuendner Kantonalbank | Swiss Leader vs. Adval Tech Holding | Swiss Leader vs. Luzerner Kantonalbank AG | Swiss Leader vs. Zurich Insurance Group |
| Ypsomed Holding vs. Jungfraubahn Holding AG | Ypsomed Holding vs. Amsterdam Commodities NV | Ypsomed Holding vs. Flow Traders BV | Ypsomed Holding vs. ForFarmers NV |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |