Correlation Between SCHALTBAU HOLDING and SSE PLC
Can any of the company-specific risk be diversified away by investing in both SCHALTBAU HOLDING and SSE PLC 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 SSE PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCHALTBAU HOLDING and SSE PLC ADR, you can compare the effects of market volatilities on SCHALTBAU HOLDING and SSE PLC 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 SSE PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHALTBAU HOLDING and SSE PLC.
Diversification Opportunities for SCHALTBAU HOLDING and SSE PLC
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCHALTBAU and SSE is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SCHALTBAU HOLDING and SSE PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSE PLC ADR 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 SSE PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSE PLC ADR has no effect on the direction of SCHALTBAU HOLDING i.e., SCHALTBAU HOLDING and SSE PLC go up and down completely randomly.
Pair Corralation between SCHALTBAU HOLDING and SSE PLC
Assuming the 90 days trading horizon SCHALTBAU HOLDING is expected to generate 0.68 times more return on investment than SSE PLC. However, SCHALTBAU HOLDING is 1.47 times less risky than SSE PLC. It trades about 0.1 of its potential returns per unit of risk. SSE PLC ADR is currently generating about -0.08 per unit of risk. If you would invest 5,900 in SCHALTBAU HOLDING on October 20, 2024 and sell it today you would earn a total of 100.00 from holding SCHALTBAU HOLDING or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCHALTBAU HOLDING vs. SSE PLC ADR
Performance |
| Timeline |
| SCHALTBAU HOLDING |
| SSE PLC ADR |
SCHALTBAU HOLDING and SSE PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHALTBAU HOLDING and SSE PLC
The main advantage of trading using opposite SCHALTBAU HOLDING and SSE PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHALTBAU HOLDING position performs unexpectedly, SSE PLC 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 SSE PLC will offset losses from the drop in SSE PLC's long position.| SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc |
| SSE PLC vs. IBERDROLA ADR1 EO | SSE PLC vs. C PARAN EN | SSE PLC vs. CIA ENGER ADR | SSE PLC vs. Companhia Energtica de |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Directory Find actively traded commodities issued by global exchanges |