Correlation Between Schweiter Technologies and Zehnder
Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies and Zehnder 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 Zehnder 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 Zehnder, you can compare the effects of market volatilities on Schweiter Technologies and Zehnder 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 Zehnder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and Zehnder.
Diversification Opportunities for Schweiter Technologies and Zehnder
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Schweiter and Zehnder is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Schweiter Technologies AG and Zehnder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zehnder 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 Zehnder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zehnder has no effect on the direction of Schweiter Technologies i.e., Schweiter Technologies and Zehnder go up and down completely randomly.
Pair Corralation between Schweiter Technologies and Zehnder
Assuming the 90 days trading horizon Schweiter Technologies AG is expected to under-perform the Zehnder. But the stock apears to be less risky and, when comparing its historical volatility, Schweiter Technologies AG is 1.06 times less risky than Zehnder. The stock trades about -0.05 of its potential returns per unit of risk. The Zehnder is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 5,151 in Zehnder on September 2, 2024 and sell it today you would lose (556.00) from holding Zehnder or give up 10.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweiter Technologies AG vs. Zehnder
Performance |
| Timeline |
| Schweiter Technologies |
| Zehnder |
Schweiter Technologies and Zehnder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweiter Technologies and Zehnder
The main advantage of trading using opposite Schweiter Technologies and Zehnder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweiter Technologies position performs unexpectedly, Zehnder 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 Zehnder will offset losses from the drop in Zehnder'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 |
| Zehnder vs. Comet Holding AG | Zehnder vs. Schweiter Technologies AG | Zehnder vs. Bossard Holding AG | Zehnder vs. Bachem Holding 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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