Correlation Between Warteck Invest and Investis Holding
Can any of the company-specific risk be diversified away by investing in both Warteck Invest and Investis Holding 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 Warteck Invest and Investis Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Warteck Invest and Investis Holding SA, you can compare the effects of market volatilities on Warteck Invest and Investis Holding 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 Warteck Invest with a short position of Investis Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Warteck Invest and Investis Holding.
Diversification Opportunities for Warteck Invest and Investis Holding
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Warteck and Investis is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Warteck Invest and Investis Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investis Holding and Warteck Invest 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 Warteck Invest are associated (or correlated) with Investis Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investis Holding has no effect on the direction of Warteck Invest i.e., Warteck Invest and Investis Holding go up and down completely randomly.
Pair Corralation between Warteck Invest and Investis Holding
Assuming the 90 days trading horizon Warteck Invest is expected to generate 3.86 times less return on investment than Investis Holding. But when comparing it to its historical volatility, Warteck Invest is 1.03 times less risky than Investis Holding. It trades about 0.03 of its potential returns per unit of risk. Investis Holding SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 9,750 in Investis Holding SA on September 3, 2024 and sell it today you would earn a total of 1,200 from holding Investis Holding SA or generate 12.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Warteck Invest vs. Investis Holding SA
Performance |
| Timeline |
| Warteck Invest |
| Investis Holding |
Warteck Invest and Investis Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Warteck Invest and Investis Holding
The main advantage of trading using opposite Warteck Invest and Investis Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Warteck Invest position performs unexpectedly, Investis Holding 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 Investis Holding will offset losses from the drop in Investis Holding's long position.| Warteck Invest vs. PSP Swiss Property | Warteck Invest vs. Allreal Holding | Warteck Invest vs. Swiss Prime Site | Warteck Invest vs. Helvetia Holding AG |
| Investis Holding vs. PSP Swiss Property | Investis Holding vs. Allreal Holding | Investis Holding vs. Swiss Prime Site | Investis Holding vs. Helvetia 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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