Correlation Between Zug Estates and PSP Swiss
Can any of the company-specific risk be diversified away by investing in both Zug Estates and PSP Swiss 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 Zug Estates and PSP Swiss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zug Estates Holding and PSP Swiss Property, you can compare the effects of market volatilities on Zug Estates and PSP Swiss 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 Zug Estates with a short position of PSP Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zug Estates and PSP Swiss.
Diversification Opportunities for Zug Estates and PSP Swiss
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zug and PSP is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Zug Estates Holding and PSP Swiss Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSP Swiss Property and Zug Estates 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 Zug Estates Holding are associated (or correlated) with PSP Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSP Swiss Property has no effect on the direction of Zug Estates i.e., Zug Estates and PSP Swiss go up and down completely randomly.
Pair Corralation between Zug Estates and PSP Swiss
Assuming the 90 days trading horizon Zug Estates is expected to generate 1.01 times less return on investment than PSP Swiss. In addition to that, Zug Estates is 1.48 times more volatile than PSP Swiss Property. It trades about 0.06 of its total potential returns per unit of risk. PSP Swiss Property is currently generating about 0.08 per unit of volatility. If you would invest 10,381 in PSP Swiss Property on August 25, 2024 and sell it today you would earn a total of 2,109 from holding PSP Swiss Property or generate 20.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.97% |
| Values | Daily Returns |
Zug Estates Holding vs. PSP Swiss Property
Performance |
| Timeline |
| Zug Estates Holding |
| PSP Swiss Property |
Zug Estates and PSP Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zug Estates and PSP Swiss
The main advantage of trading using opposite Zug Estates and PSP Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zug Estates position performs unexpectedly, PSP Swiss 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 PSP Swiss will offset losses from the drop in PSP Swiss' long position.| Zug Estates vs. Allreal Holding | Zug Estates vs. Mobimo Hldg | Zug Estates vs. Swiss Prime Site | Zug Estates vs. PSP Swiss Property |
| PSP Swiss vs. Swiss Prime Site | PSP Swiss vs. Allreal Holding | PSP Swiss vs. Mobimo Hldg | PSP Swiss 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |