Correlation Between Schlatter Industries and Zueblin Immobilien
Can any of the company-specific risk be diversified away by investing in both Schlatter Industries and Zueblin Immobilien 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 Zueblin Immobilien 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 Zueblin Immobilien Holding, you can compare the effects of market volatilities on Schlatter Industries and Zueblin Immobilien 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 Zueblin Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schlatter Industries and Zueblin Immobilien.
Diversification Opportunities for Schlatter Industries and Zueblin Immobilien
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Schlatter and Zueblin is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Schlatter Industries AG and Zueblin Immobilien Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zueblin Immobilien 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 Zueblin Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zueblin Immobilien has no effect on the direction of Schlatter Industries i.e., Schlatter Industries and Zueblin Immobilien go up and down completely randomly.
Pair Corralation between Schlatter Industries and Zueblin Immobilien
Assuming the 90 days trading horizon Schlatter Industries AG is expected to under-perform the Zueblin Immobilien. In addition to that, Schlatter Industries is 1.75 times more volatile than Zueblin Immobilien Holding. It trades about -0.02 of its total potential returns per unit of risk. Zueblin Immobilien Holding is currently generating about 0.15 per unit of volatility. If you would invest 2,960 in Zueblin Immobilien Holding on September 1, 2024 and sell it today you would earn a total of 160.00 from holding Zueblin Immobilien Holding or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
Schlatter Industries AG vs. Zueblin Immobilien Holding
Performance |
| Timeline |
| Schlatter Industries |
| Zueblin Immobilien |
Schlatter Industries and Zueblin Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schlatter Industries and Zueblin Immobilien
The main advantage of trading using opposite Schlatter Industries and Zueblin Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schlatter Industries position performs unexpectedly, Zueblin Immobilien 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 Zueblin Immobilien will offset losses from the drop in Zueblin Immobilien'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 |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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