Correlation Between Triad Group and Schweiter Technologies
Can any of the company-specific risk be diversified away by investing in both Triad Group and Schweiter Technologies 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 Triad Group and Schweiter Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Group PLC and Schweiter Technologies AG, you can compare the effects of market volatilities on Triad Group and Schweiter Technologies 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 Triad Group with a short position of Schweiter Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Schweiter Technologies.
Diversification Opportunities for Triad Group and Schweiter Technologies
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Triad and Schweiter is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and Schweiter Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweiter Technologies and Triad Group 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 Triad Group PLC are associated (or correlated) with Schweiter Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweiter Technologies has no effect on the direction of Triad Group i.e., Triad Group and Schweiter Technologies go up and down completely randomly.
Pair Corralation between Triad Group and Schweiter Technologies
Assuming the 90 days trading horizon Triad Group PLC is expected to under-perform the Schweiter Technologies. In addition to that, Triad Group is 1.08 times more volatile than Schweiter Technologies AG. It trades about -0.5 of its total potential returns per unit of risk. Schweiter Technologies AG is currently generating about -0.07 per unit of volatility. If you would invest 41,249 in Schweiter Technologies AG on September 25, 2024 and sell it today you would lose (899.00) from holding Schweiter Technologies AG or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triad Group PLC vs. Schweiter Technologies AG
Performance |
| Timeline |
| Triad Group PLC |
| Schweiter Technologies |
Triad Group and Schweiter Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Schweiter Technologies
The main advantage of trading using opposite Triad Group and Schweiter Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group position performs unexpectedly, Schweiter Technologies 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 Schweiter Technologies will offset losses from the drop in Schweiter Technologies' long position.| Triad Group vs. Chocoladefabriken Lindt Spruengli | Triad Group vs. Rockwood Realisation PLC | Triad Group vs. Toyota Motor Corp | Triad Group vs. Johnson Matthey PLC |
| Schweiter Technologies vs. Uniper SE | Schweiter Technologies vs. Mulberry Group PLC | Schweiter Technologies vs. London Security Plc | Schweiter Technologies vs. Triad Group PLC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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