Correlation Between Strauss and Salomon A
Can any of the company-specific risk be diversified away by investing in both Strauss and Salomon A 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 Strauss and Salomon A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strauss Group and Salomon A Angel, you can compare the effects of market volatilities on Strauss and Salomon A 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 Strauss with a short position of Salomon A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strauss and Salomon A.
Diversification Opportunities for Strauss and Salomon A
Very good diversification
The 3 months correlation between Strauss and Salomon is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Strauss Group and Salomon A Angel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salomon A Angel and Strauss 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 Strauss Group are associated (or correlated) with Salomon A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salomon A Angel has no effect on the direction of Strauss i.e., Strauss and Salomon A go up and down completely randomly.
Pair Corralation between Strauss and Salomon A
Assuming the 90 days trading horizon Strauss Group is expected to generate 0.56 times more return on investment than Salomon A. However, Strauss Group is 1.77 times less risky than Salomon A. It trades about 0.09 of its potential returns per unit of risk. Salomon A Angel is currently generating about 0.01 per unit of risk. If you would invest 595,000 in Strauss Group on August 30, 2024 and sell it today you would earn a total of 94,800 from holding Strauss Group or generate 15.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strauss Group vs. Salomon A Angel
Performance |
| Timeline |
| Strauss Group |
| Salomon A Angel |
Strauss and Salomon A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strauss and Salomon A
The main advantage of trading using opposite Strauss and Salomon A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strauss position performs unexpectedly, Salomon A 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 Salomon A will offset losses from the drop in Salomon A's long position.| Strauss vs. B Communications | Strauss vs. Holmes Place International | Strauss vs. Nova | Strauss vs. Petrochemical |
| Salomon A vs. Zanlakol | Salomon A vs. Gan Shmuel | Salomon A vs. Carmit | Salomon A vs. Sano Brunos Enterprises |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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