Correlation Between Swissquote Group and Sulzer AG
Can any of the company-specific risk be diversified away by investing in both Swissquote Group and Sulzer AG 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 Sulzer AG 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 Sulzer AG, you can compare the effects of market volatilities on Swissquote Group and Sulzer 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 Swissquote Group with a short position of Sulzer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swissquote Group and Sulzer AG.
Diversification Opportunities for Swissquote Group and Sulzer AG
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Swissquote and Sulzer is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Swissquote Group Holding and Sulzer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sulzer 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 Sulzer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sulzer AG has no effect on the direction of Swissquote Group i.e., Swissquote Group and Sulzer AG go up and down completely randomly.
Pair Corralation between Swissquote Group and Sulzer AG
Assuming the 90 days trading horizon Swissquote Group Holding is expected to generate 1.43 times more return on investment than Sulzer AG. However, Swissquote Group is 1.43 times more volatile than Sulzer AG. It trades about 0.38 of its potential returns per unit of risk. Sulzer AG is currently generating about -0.01 per unit of risk. If you would invest 29,420 in Swissquote Group Holding on September 1, 2024 and sell it today you would earn a total of 5,160 from holding Swissquote Group Holding or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swissquote Group Holding vs. Sulzer AG
Performance |
| Timeline |
| Swissquote Group Holding |
| Sulzer AG |
Swissquote Group and Sulzer AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swissquote Group and Sulzer AG
The main advantage of trading using opposite Swissquote Group and Sulzer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swissquote Group position performs unexpectedly, Sulzer 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 Sulzer AG will offset losses from the drop in Sulzer AG'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 |
| Sulzer AG vs. OC Oerlikon Corp | Sulzer AG vs. Helvetia Holding AG | Sulzer AG vs. Swiss Life Holding | Sulzer AG vs. VAT Group AG |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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