Correlation Between SCHALTBAU HOLDING and EVN AG
Can any of the company-specific risk be diversified away by investing in both SCHALTBAU HOLDING and EVN AG 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 SCHALTBAU HOLDING and EVN AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCHALTBAU HOLDING and EVN AG, you can compare the effects of market volatilities on SCHALTBAU HOLDING and EVN AG 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 SCHALTBAU HOLDING with a short position of EVN AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHALTBAU HOLDING and EVN AG.
Diversification Opportunities for SCHALTBAU HOLDING and EVN AG
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCHALTBAU and EVN is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding SCHALTBAU HOLDING and EVN AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVN AG and SCHALTBAU HOLDING 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 SCHALTBAU HOLDING are associated (or correlated) with EVN AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVN AG has no effect on the direction of SCHALTBAU HOLDING i.e., SCHALTBAU HOLDING and EVN AG go up and down completely randomly.
Pair Corralation between SCHALTBAU HOLDING and EVN AG
Assuming the 90 days trading horizon SCHALTBAU HOLDING is expected to under-perform the EVN AG. But the stock apears to be less risky and, when comparing its historical volatility, SCHALTBAU HOLDING is 1.25 times less risky than EVN AG. The stock trades about -0.11 of its potential returns per unit of risk. The EVN AG is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,220 in EVN AG on November 2, 2024 and sell it today you would earn a total of 80.00 from holding EVN AG or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SCHALTBAU HOLDING vs. EVN AG
Performance |
| Timeline |
| SCHALTBAU HOLDING |
| EVN AG |
SCHALTBAU HOLDING and EVN AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHALTBAU HOLDING and EVN AG
The main advantage of trading using opposite SCHALTBAU HOLDING and EVN AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHALTBAU HOLDING position performs unexpectedly, EVN AG 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 EVN AG will offset losses from the drop in EVN AG's long position.| SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets |