Correlation Between Swiss Steel and Mobilezone
Can any of the company-specific risk be diversified away by investing in both Swiss Steel and Mobilezone 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 Swiss Steel and Mobilezone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Steel Holding and mobilezone ag, you can compare the effects of market volatilities on Swiss Steel and Mobilezone 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 Swiss Steel with a short position of Mobilezone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Steel and Mobilezone.
Diversification Opportunities for Swiss Steel and Mobilezone
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Swiss and Mobilezone is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Steel Holding and mobilezone ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone ag and Swiss Steel 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 Swiss Steel Holding are associated (or correlated) with Mobilezone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone ag has no effect on the direction of Swiss Steel i.e., Swiss Steel and Mobilezone go up and down completely randomly.
Pair Corralation between Swiss Steel and Mobilezone
Assuming the 90 days trading horizon Swiss Steel Holding is expected to under-perform the Mobilezone. In addition to that, Swiss Steel is 7.33 times more volatile than mobilezone ag. It trades about -0.6 of its total potential returns per unit of risk. mobilezone ag is currently generating about 0.08 per unit of volatility. If you would invest 1,378 in mobilezone ag on September 1, 2024 and sell it today you would earn a total of 18.00 from holding mobilezone ag or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Steel Holding vs. mobilezone ag
Performance |
| Timeline |
| Swiss Steel Holding |
| mobilezone ag |
Swiss Steel and Mobilezone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Steel and Mobilezone
The main advantage of trading using opposite Swiss Steel and Mobilezone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Steel position performs unexpectedly, Mobilezone 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 Mobilezone will offset losses from the drop in Mobilezone's long position.| Swiss Steel vs. OC Oerlikon Corp | Swiss Steel vs. Meyer Burger Tech | Swiss Steel vs. Evolva Holding SA | Swiss Steel vs. Sulzer AG |
| Mobilezone vs. Zurich Insurance Group | Mobilezone vs. VP Bank AG | Mobilezone vs. Cembra Money Bank | Mobilezone vs. Glarner Kantonalbank |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |