Correlation Between Schweiter Technologies and SFS Group
Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies and SFS Group 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 SFS Group 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 SFS Group AG, you can compare the effects of market volatilities on Schweiter Technologies and SFS Group 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 SFS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and SFS Group.
Diversification Opportunities for Schweiter Technologies and SFS Group
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Schweiter and SFS is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Schweiter Technologies AG and SFS Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFS Group AG 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 SFS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFS Group AG has no effect on the direction of Schweiter Technologies i.e., Schweiter Technologies and SFS Group go up and down completely randomly.
Pair Corralation between Schweiter Technologies and SFS Group
Assuming the 90 days trading horizon Schweiter Technologies AG is expected to under-perform the SFS Group. In addition to that, Schweiter Technologies is 1.35 times more volatile than SFS Group AG. It trades about -0.06 of its total potential returns per unit of risk. SFS Group AG is currently generating about 0.06 per unit of volatility. If you would invest 8,726 in SFS Group AG on August 27, 2024 and sell it today you would earn a total of 3,734 from holding SFS Group AG or generate 42.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweiter Technologies AG vs. SFS Group AG
Performance |
| Timeline |
| Schweiter Technologies |
| SFS Group AG |
Schweiter Technologies and SFS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweiter Technologies and SFS Group
The main advantage of trading using opposite Schweiter Technologies and SFS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweiter Technologies position performs unexpectedly, SFS Group 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 SFS Group will offset losses from the drop in SFS Group's long position.| Schweiter Technologies vs. OC Oerlikon Corp | Schweiter Technologies vs. Helvetia Holding AG | Schweiter Technologies vs. Swiss Life Holding | Schweiter Technologies vs. VAT Group AG |
| SFS Group vs. VAT Group AG | SFS Group vs. Bucher Industries AG | SFS Group vs. Comet Holding AG | SFS Group vs. Daetwyl I |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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