Correlation Between Schneider Electric and SALTX TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Schneider Electric and SALTX TECHNOLOGY 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 Schneider Electric and SALTX TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schneider Electric SE and SALTX TECHNOLOGY HLDG, you can compare the effects of market volatilities on Schneider Electric and SALTX TECHNOLOGY 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 Schneider Electric with a short position of SALTX TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schneider Electric and SALTX TECHNOLOGY.
Diversification Opportunities for Schneider Electric and SALTX TECHNOLOGY
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Schneider and SALTX is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Schneider Electric SE and SALTX TECHNOLOGY HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SALTX TECHNOLOGY HLDG and Schneider Electric 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 Schneider Electric SE are associated (or correlated) with SALTX TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SALTX TECHNOLOGY HLDG has no effect on the direction of Schneider Electric i.e., Schneider Electric and SALTX TECHNOLOGY go up and down completely randomly.
Pair Corralation between Schneider Electric and SALTX TECHNOLOGY
Assuming the 90 days trading horizon Schneider Electric SE is expected to generate 0.29 times more return on investment than SALTX TECHNOLOGY. However, Schneider Electric SE is 3.44 times less risky than SALTX TECHNOLOGY. It trades about 0.03 of its potential returns per unit of risk. SALTX TECHNOLOGY HLDG is currently generating about -0.15 per unit of risk. If you would invest 23,790 in Schneider Electric SE on September 28, 2024 and sell it today you would earn a total of 130.00 from holding Schneider Electric SE or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schneider Electric SE vs. SALTX TECHNOLOGY HLDG
Performance |
| Timeline |
| Schneider Electric |
| SALTX TECHNOLOGY HLDG |
Schneider Electric and SALTX TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schneider Electric and SALTX TECHNOLOGY
The main advantage of trading using opposite Schneider Electric and SALTX TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schneider Electric position performs unexpectedly, SALTX TECHNOLOGY 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 SALTX TECHNOLOGY will offset losses from the drop in SALTX TECHNOLOGY's long position.| Schneider Electric vs. SIEMENS AG SP | Schneider Electric vs. Siemens Aktiengesellschaft | Schneider Electric vs. Atlas Copco A | Schneider Electric vs. RATIONAL Aktiengesellschaft |
| SALTX TECHNOLOGY vs. Jupiter Fund Management | SALTX TECHNOLOGY vs. Perdoceo Education | SALTX TECHNOLOGY vs. CSSC Offshore Marine | SALTX TECHNOLOGY vs. SIEM OFFSHORE NEW |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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