Correlation Between Symrise Ag and Fuchs Petrolub
Can any of the company-specific risk be diversified away by investing in both Symrise Ag and Fuchs Petrolub 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 Symrise Ag and Fuchs Petrolub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symrise Ag PK and Fuchs Petrolub SE, you can compare the effects of market volatilities on Symrise Ag and Fuchs Petrolub 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 Symrise Ag with a short position of Fuchs Petrolub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symrise Ag and Fuchs Petrolub.
Diversification Opportunities for Symrise Ag and Fuchs Petrolub
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symrise and Fuchs is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Symrise Ag PK and Fuchs Petrolub SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuchs Petrolub SE and Symrise Ag 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 Symrise Ag PK are associated (or correlated) with Fuchs Petrolub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuchs Petrolub SE has no effect on the direction of Symrise Ag i.e., Symrise Ag and Fuchs Petrolub go up and down completely randomly.
Pair Corralation between Symrise Ag and Fuchs Petrolub
Assuming the 90 days horizon Symrise Ag PK is expected to under-perform the Fuchs Petrolub. But the pink sheet apears to be less risky and, when comparing its historical volatility, Symrise Ag PK is 1.23 times less risky than Fuchs Petrolub. The pink sheet trades about -0.29 of its potential returns per unit of risk. The Fuchs Petrolub SE is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 1,204 in Fuchs Petrolub SE on September 12, 2024 and sell it today you would lose (60.00) from holding Fuchs Petrolub SE or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symrise Ag PK vs. Fuchs Petrolub SE
Performance |
| Timeline |
| Symrise Ag PK |
| Fuchs Petrolub SE |
Symrise Ag and Fuchs Petrolub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symrise Ag and Fuchs Petrolub
The main advantage of trading using opposite Symrise Ag and Fuchs Petrolub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symrise Ag position performs unexpectedly, Fuchs Petrolub 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 Fuchs Petrolub will offset losses from the drop in Fuchs Petrolub's long position.| Symrise Ag vs. Chemours Co | Symrise Ag vs. International Flavors Fragrances | Symrise Ag vs. Air Products and | Symrise Ag vs. PPG Industries |
| Fuchs Petrolub vs. Chemours Co | Fuchs Petrolub vs. International Flavors Fragrances | Fuchs Petrolub vs. Air Products and | Fuchs Petrolub vs. PPG Industries |
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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