Correlation Between Intouch Holdings and Gerresheimer
Can any of the company-specific risk be diversified away by investing in both Intouch Holdings and Gerresheimer 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 Intouch Holdings and Gerresheimer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intouch Holdings Public and Gerresheimer AG, you can compare the effects of market volatilities on Intouch Holdings and Gerresheimer 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 Intouch Holdings with a short position of Gerresheimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and Gerresheimer.
Diversification Opportunities for Intouch Holdings and Gerresheimer
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intouch and Gerresheimer is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and Gerresheimer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gerresheimer AG and Intouch Holdings 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 Intouch Holdings Public are associated (or correlated) with Gerresheimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gerresheimer AG has no effect on the direction of Intouch Holdings i.e., Intouch Holdings and Gerresheimer go up and down completely randomly.
Pair Corralation between Intouch Holdings and Gerresheimer
Assuming the 90 days trading horizon Intouch Holdings Public is expected to under-perform the Gerresheimer. But the stock apears to be less risky and, when comparing its historical volatility, Intouch Holdings Public is 1.16 times less risky than Gerresheimer. The stock trades about -0.2 of its potential returns per unit of risk. The Gerresheimer AG is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 7,860 in Gerresheimer AG on September 2, 2024 and sell it today you would lose (390.00) from holding Gerresheimer AG or give up 4.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intouch Holdings Public vs. Gerresheimer AG
Performance |
| Timeline |
| Intouch Holdings Public |
| Gerresheimer AG |
Intouch Holdings and Gerresheimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intouch Holdings and Gerresheimer
The main advantage of trading using opposite Intouch Holdings and Gerresheimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Holdings position performs unexpectedly, Gerresheimer 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 Gerresheimer will offset losses from the drop in Gerresheimer's long position.| Intouch Holdings vs. TELE2 AB UNSPADR12 | Intouch Holdings vs. Advanced Info Service | Intouch Holdings vs. PLDT Inc | Intouch Holdings vs. Sino Land |
| Gerresheimer vs. ESSILORLUXOTTICA 12ON | Gerresheimer vs. Intuitive Surgical | Gerresheimer vs. EssilorLuxottica Socit anonyme | Gerresheimer vs. HOYA Corporation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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