Correlation Between Straumann Holding and ATEME SA
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and ATEME 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 ATEME 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 ATEME SA, you can compare the effects of market volatilities on Straumann Holding and ATEME 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 ATEME SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and ATEME SA.
Diversification Opportunities for Straumann Holding and ATEME SA
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Straumann and ATEME is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and ATEME SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATEME 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 ATEME SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATEME SA has no effect on the direction of Straumann Holding i.e., Straumann Holding and ATEME SA go up and down completely randomly.
Pair Corralation between Straumann Holding and ATEME SA
Assuming the 90 days trading horizon Straumann Holding is expected to generate 7.87 times less return on investment than ATEME SA. But when comparing it to its historical volatility, Straumann Holding AG is 2.12 times less risky than ATEME SA. It trades about 0.02 of its potential returns per unit of risk. ATEME SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 452.00 in ATEME SA on September 1, 2024 and sell it today you would earn a total of 27.00 from holding ATEME SA or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Straumann Holding AG vs. ATEME SA
Performance |
| Timeline |
| Straumann Holding |
| ATEME SA |
Straumann Holding and ATEME SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and ATEME SA
The main advantage of trading using opposite Straumann Holding and ATEME SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, ATEME 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 ATEME SA will offset losses from the drop in ATEME 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 |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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