Correlation Between SCHALTBAU HOLDING and Varta AG
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By analyzing existing cross correlation between SCHALTBAU HOLDING and Varta AG, you can compare the effects of market volatilities on SCHALTBAU HOLDING and Varta 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 Varta AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHALTBAU HOLDING and Varta AG.
Diversification Opportunities for SCHALTBAU HOLDING and Varta AG
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCHALTBAU and Varta is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SCHALTBAU HOLDING and Varta AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varta 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 Varta AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varta AG has no effect on the direction of SCHALTBAU HOLDING i.e., SCHALTBAU HOLDING and Varta AG go up and down completely randomly.
Pair Corralation between SCHALTBAU HOLDING and Varta AG
Assuming the 90 days trading horizon SCHALTBAU HOLDING is expected to generate 0.18 times more return on investment than Varta AG. However, SCHALTBAU HOLDING is 5.46 times less risky than Varta AG. It trades about 0.03 of its potential returns per unit of risk. Varta AG is currently generating about -0.36 per unit of risk. If you would invest 5,800 in SCHALTBAU HOLDING on November 7, 2024 and sell it today you would earn a total of 100.00 from holding SCHALTBAU HOLDING or generate 1.72% 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. Varta AG
Performance |
| Timeline |
| SCHALTBAU HOLDING |
| Varta AG |
SCHALTBAU HOLDING and Varta AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHALTBAU HOLDING and Varta AG
The main advantage of trading using opposite SCHALTBAU HOLDING and Varta AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHALTBAU HOLDING position performs unexpectedly, Varta 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 Varta AG will offset losses from the drop in Varta AG's long position.| SCHALTBAU HOLDING vs. Dalata Hotel Group | SCHALTBAU HOLDING vs. Marie Brizard Wine | SCHALTBAU HOLDING vs. Playa Hotels Resorts | SCHALTBAU HOLDING vs. Zijin Mining Group |
| Varta AG vs. ZINC MEDIA GR | Varta AG vs. TOWNSQUARE MEDIA INC | Varta AG vs. Take Two Interactive Software | Varta AG vs. ANTA SPORTS PRODUCT |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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