Correlation Between Schlatter Industries and OC Oerlikon
Can any of the company-specific risk be diversified away by investing in both Schlatter Industries and OC Oerlikon 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 Schlatter Industries and OC Oerlikon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schlatter Industries AG and OC Oerlikon Corp, you can compare the effects of market volatilities on Schlatter Industries and OC Oerlikon 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 Schlatter Industries with a short position of OC Oerlikon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schlatter Industries and OC Oerlikon.
Diversification Opportunities for Schlatter Industries and OC Oerlikon
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Schlatter and OERL is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Schlatter Industries AG and OC Oerlikon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OC Oerlikon Corp and Schlatter Industries 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 Schlatter Industries AG are associated (or correlated) with OC Oerlikon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OC Oerlikon Corp has no effect on the direction of Schlatter Industries i.e., Schlatter Industries and OC Oerlikon go up and down completely randomly.
Pair Corralation between Schlatter Industries and OC Oerlikon
Assuming the 90 days trading horizon Schlatter Industries AG is expected to generate 1.47 times more return on investment than OC Oerlikon. However, Schlatter Industries is 1.47 times more volatile than OC Oerlikon Corp. It trades about -0.05 of its potential returns per unit of risk. OC Oerlikon Corp is currently generating about -0.12 per unit of risk. If you would invest 2,700 in Schlatter Industries AG on August 25, 2024 and sell it today you would lose (420.00) from holding Schlatter Industries AG or give up 15.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.54% |
| Values | Daily Returns |
Schlatter Industries AG vs. OC Oerlikon Corp
Performance |
| Timeline |
| Schlatter Industries |
| OC Oerlikon Corp |
Schlatter Industries and OC Oerlikon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schlatter Industries and OC Oerlikon
The main advantage of trading using opposite Schlatter Industries and OC Oerlikon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schlatter Industries position performs unexpectedly, OC Oerlikon 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 OC Oerlikon will offset losses from the drop in OC Oerlikon's long position.| Schlatter Industries vs. OC Oerlikon Corp | Schlatter Industries vs. Helvetia Holding AG | Schlatter Industries vs. Swiss Life Holding | Schlatter Industries vs. VAT Group AG |
| OC Oerlikon vs. Sulzer AG | OC Oerlikon vs. Helvetia Holding AG | OC Oerlikon vs. Swiss Life Holding | OC Oerlikon vs. Adecco 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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