Correlation Between Talanx AG and WICKES GROUP
Can any of the company-specific risk be diversified away by investing in both Talanx AG and WICKES 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 Talanx AG and WICKES GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and WICKES GROUP PLC, you can compare the effects of market volatilities on Talanx AG and WICKES 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 Talanx AG with a short position of WICKES GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and WICKES GROUP.
Diversification Opportunities for Talanx AG and WICKES GROUP
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Talanx and WICKES is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and WICKES GROUP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WICKES GROUP PLC and Talanx 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 Talanx AG are associated (or correlated) with WICKES GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WICKES GROUP PLC has no effect on the direction of Talanx AG i.e., Talanx AG and WICKES GROUP go up and down completely randomly.
Pair Corralation between Talanx AG and WICKES GROUP
Assuming the 90 days horizon Talanx AG is expected to generate 0.78 times more return on investment than WICKES GROUP. However, Talanx AG is 1.29 times less risky than WICKES GROUP. It trades about 0.36 of its potential returns per unit of risk. WICKES GROUP PLC is currently generating about -0.27 per unit of risk. If you would invest 7,125 in Talanx AG on August 26, 2024 and sell it today you would earn a total of 760.00 from holding Talanx AG or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talanx AG vs. WICKES GROUP PLC
Performance |
| Timeline |
| Talanx AG |
| WICKES GROUP PLC |
Talanx AG and WICKES GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and WICKES GROUP
The main advantage of trading using opposite Talanx AG and WICKES GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG position performs unexpectedly, WICKES 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 WICKES GROUP will offset losses from the drop in WICKES GROUP's long position.| Talanx AG vs. KIMBALL ELECTRONICS | Talanx AG vs. AVITA Medical | Talanx AG vs. Avanos Medical | Talanx AG vs. LG Electronics |
| WICKES GROUP vs. The Home Depot | WICKES GROUP vs. Superior Plus Corp | WICKES GROUP vs. NMI Holdings | WICKES GROUP vs. Origin Agritech |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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