Correlation Between Swissquote Group and Calida Holding
Can any of the company-specific risk be diversified away by investing in both Swissquote Group and Calida Holding 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 Swissquote Group and Calida Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swissquote Group Holding and Calida Holding AG, you can compare the effects of market volatilities on Swissquote Group and Calida Holding 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 Swissquote Group with a short position of Calida Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swissquote Group and Calida Holding.
Diversification Opportunities for Swissquote Group and Calida Holding
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Swissquote and Calida is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Swissquote Group Holding and Calida Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calida Holding AG and Swissquote Group 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 Swissquote Group Holding are associated (or correlated) with Calida Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calida Holding AG has no effect on the direction of Swissquote Group i.e., Swissquote Group and Calida Holding go up and down completely randomly.
Pair Corralation between Swissquote Group and Calida Holding
Assuming the 90 days trading horizon Swissquote Group Holding is expected to generate 0.84 times more return on investment than Calida Holding. However, Swissquote Group Holding is 1.19 times less risky than Calida Holding. It trades about 0.15 of its potential returns per unit of risk. Calida Holding AG is currently generating about -0.02 per unit of risk. If you would invest 19,460 in Swissquote Group Holding on September 4, 2024 and sell it today you would earn a total of 15,660 from holding Swissquote Group Holding or generate 80.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swissquote Group Holding vs. Calida Holding AG
Performance |
| Timeline |
| Swissquote Group Holding |
| Calida Holding AG |
Swissquote Group and Calida Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swissquote Group and Calida Holding
The main advantage of trading using opposite Swissquote Group and Calida Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swissquote Group position performs unexpectedly, Calida Holding 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 Calida Holding will offset losses from the drop in Calida Holding's long position.| Swissquote Group vs. Logitech International SA | Swissquote Group vs. Swiss Life Holding | Swissquote Group vs. VAT Group AG | Swissquote Group vs. Partners Group Holding |
| Calida Holding vs. Swatch Group AG | Calida Holding vs. Helvetia Holding AG | Calida Holding vs. Emmi AG | Calida Holding vs. Swissquote Group Holding |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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