Correlation Between Straumann Holding and U Blox
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and U Blox 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 U Blox 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 U Blox Holding, you can compare the effects of market volatilities on Straumann Holding and U Blox 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 U Blox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and U Blox.
Diversification Opportunities for Straumann Holding and U Blox
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Straumann and UBXN is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and U Blox Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Blox Holding 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 U Blox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Blox Holding has no effect on the direction of Straumann Holding i.e., Straumann Holding and U Blox go up and down completely randomly.
Pair Corralation between Straumann Holding and U Blox
Assuming the 90 days trading horizon Straumann Holding AG is expected to generate 0.84 times more return on investment than U Blox. However, Straumann Holding AG is 1.18 times less risky than U Blox. It trades about 0.01 of its potential returns per unit of risk. U Blox Holding is currently generating about -0.03 per unit of risk. If you would invest 12,612 in Straumann Holding AG on November 27, 2024 and sell it today you would lose (122.00) from holding Straumann Holding AG or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Straumann Holding AG vs. U Blox Holding
Performance |
| Timeline |
| Straumann Holding |
| U Blox Holding |
Straumann Holding and U Blox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and U Blox
The main advantage of trading using opposite Straumann Holding and U Blox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, U Blox 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 U Blox will offset losses from the drop in U Blox'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |