Correlation Between Straumann Holding and Esker SA
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and Esker SA 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 Straumann Holding and Esker SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and Esker SA, you can compare the effects of market volatilities on Straumann Holding and Esker SA 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 Straumann Holding with a short position of Esker SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and Esker SA.
Diversification Opportunities for Straumann Holding and Esker SA
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Straumann and Esker is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and Esker SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esker SA and Straumann Holding 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 Straumann Holding AG are associated (or correlated) with Esker SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esker SA has no effect on the direction of Straumann Holding i.e., Straumann Holding and Esker SA go up and down completely randomly.
Pair Corralation between Straumann Holding and Esker SA
Assuming the 90 days trading horizon Straumann Holding is expected to generate 5.57 times less return on investment than Esker SA. In addition to that, Straumann Holding is 1.03 times more volatile than Esker SA. It trades about 0.01 of its total potential returns per unit of risk. Esker SA is currently generating about 0.06 per unit of volatility. If you would invest 16,116 in Esker SA on August 31, 2024 and sell it today you would earn a total of 9,924 from holding Esker SA or generate 61.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.35% |
| Values | Daily Returns |
Straumann Holding AG vs. Esker SA
Performance |
| Timeline |
| Straumann Holding |
| Esker SA |
Straumann Holding and Esker SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and Esker SA
The main advantage of trading using opposite Straumann Holding and Esker SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, Esker SA 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 Esker SA will offset losses from the drop in Esker SA's long position.| Straumann Holding vs. Sonova H Ag | Straumann Holding vs. Sika AG | Straumann Holding vs. Lonza Group AG | Straumann Holding vs. Givaudan SA |
| Esker SA vs. Chargeurs SA | Esker SA vs. Straumann Holding AG | Esker SA vs. Manitou BF SA | Esker SA vs. Amundi Index Solutions |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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