Correlation Between TIANDE CHEMICAL and Grenke AG
Can any of the company-specific risk be diversified away by investing in both TIANDE CHEMICAL and Grenke AG 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 TIANDE CHEMICAL and Grenke AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIANDE CHEMICAL and Grenke AG, you can compare the effects of market volatilities on TIANDE CHEMICAL and Grenke AG 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 TIANDE CHEMICAL with a short position of Grenke AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIANDE CHEMICAL and Grenke AG.
Diversification Opportunities for TIANDE CHEMICAL and Grenke AG
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TIANDE and Grenke is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding TIANDE CHEMICAL and Grenke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grenke AG and TIANDE CHEMICAL 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 TIANDE CHEMICAL are associated (or correlated) with Grenke AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grenke AG has no effect on the direction of TIANDE CHEMICAL i.e., TIANDE CHEMICAL and Grenke AG go up and down completely randomly.
Pair Corralation between TIANDE CHEMICAL and Grenke AG
If you would invest 1,572 in Grenke AG on October 10, 2024 and sell it today you would earn a total of 62.00 from holding Grenke AG or generate 3.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TIANDE CHEMICAL vs. Grenke AG
Performance |
Timeline |
TIANDE CHEMICAL |
Grenke AG |
TIANDE CHEMICAL and Grenke AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TIANDE CHEMICAL and Grenke AG
The main advantage of trading using opposite TIANDE CHEMICAL and Grenke AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIANDE CHEMICAL position performs unexpectedly, Grenke AG 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 Grenke AG will offset losses from the drop in Grenke AG's long position.TIANDE CHEMICAL vs. Universal Insurance Holdings | TIANDE CHEMICAL vs. 24SEVENOFFICE GROUP AB | TIANDE CHEMICAL vs. ScanSource | TIANDE CHEMICAL vs. SCANSOURCE |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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