Correlation Between Schneider Electric and Glaston Oyj
Can any of the company-specific risk be diversified away by investing in both Schneider Electric and Glaston Oyj 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 Glaston Oyj 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 Glaston Oyj Abp, you can compare the effects of market volatilities on Schneider Electric and Glaston Oyj 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 Glaston Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schneider Electric and Glaston Oyj.
Diversification Opportunities for Schneider Electric and Glaston Oyj
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Schneider and Glaston is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Schneider Electric SE and Glaston Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaston Oyj Abp 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 Glaston Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaston Oyj Abp has no effect on the direction of Schneider Electric i.e., Schneider Electric and Glaston Oyj go up and down completely randomly.
Pair Corralation between Schneider Electric and Glaston Oyj
Assuming the 90 days trading horizon Schneider Electric SE is expected to generate 0.74 times more return on investment than Glaston Oyj. However, Schneider Electric SE is 1.35 times less risky than Glaston Oyj. It trades about -0.04 of its potential returns per unit of risk. Glaston Oyj Abp is currently generating about -0.18 per unit of risk. If you would invest 24,505 in Schneider Electric SE on August 27, 2024 and sell it today you would lose (460.00) from holding Schneider Electric SE or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schneider Electric SE vs. Glaston Oyj Abp
Performance |
| Timeline |
| Schneider Electric |
| Glaston Oyj Abp |
Schneider Electric and Glaston Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schneider Electric and Glaston Oyj
The main advantage of trading using opposite Schneider Electric and Glaston Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schneider Electric position performs unexpectedly, Glaston Oyj 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 Glaston Oyj will offset losses from the drop in Glaston Oyj's long position.| Schneider Electric vs. Superior Plus Corp | Schneider Electric vs. NMI Holdings | Schneider Electric vs. Origin Agritech | Schneider Electric vs. SIVERS SEMICONDUCTORS AB |
| Glaston Oyj vs. Superior Plus Corp | Glaston Oyj vs. NMI Holdings | Glaston Oyj vs. Origin Agritech | Glaston Oyj vs. SIVERS SEMICONDUCTORS AB |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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