Correlation Between Schweiter Technologies and OC Oerlikon
Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies 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 Schweiter Technologies and OC Oerlikon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweiter Technologies AG and OC Oerlikon Corp, you can compare the effects of market volatilities on Schweiter Technologies 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 Schweiter Technologies with a short position of OC Oerlikon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and OC Oerlikon.
Diversification Opportunities for Schweiter Technologies and OC Oerlikon
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Schweiter and OERL is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Schweiter Technologies 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 Schweiter Technologies 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 Schweiter Technologies 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 Schweiter Technologies i.e., Schweiter Technologies and OC Oerlikon go up and down completely randomly.
Pair Corralation between Schweiter Technologies and OC Oerlikon
Assuming the 90 days trading horizon Schweiter Technologies AG is expected to generate 1.14 times more return on investment than OC Oerlikon. However, Schweiter Technologies is 1.14 times more volatile than OC Oerlikon Corp. It trades about -0.01 of its potential returns per unit of risk. OC Oerlikon Corp is currently generating about -0.11 per unit of risk. If you would invest 43,350 in Schweiter Technologies AG on August 30, 2024 and sell it today you would lose (2,600) from holding Schweiter Technologies AG or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweiter Technologies AG vs. OC Oerlikon Corp
Performance |
| Timeline |
| Schweiter Technologies |
| OC Oerlikon Corp |
Schweiter Technologies and OC Oerlikon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweiter Technologies and OC Oerlikon
The main advantage of trading using opposite Schweiter Technologies and OC Oerlikon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweiter Technologies 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.| Schweiter Technologies vs. Inficon Holding | Schweiter Technologies vs. Bucher Industries AG | Schweiter Technologies vs. Sulzer AG | Schweiter Technologies vs. Interroll Holding 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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