Correlation Between Calida Holding and Implenia

Can any of the company-specific risk be diversified away by investing in both Calida Holding and Implenia 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 Calida Holding and Implenia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calida Holding AG and Implenia AG, you can compare the effects of market volatilities on Calida Holding and Implenia 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 Calida Holding with a short position of Implenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calida Holding and Implenia.

Diversification Opportunities for Calida Holding and Implenia

0.73

Correlation Coefficient

Calida Holding  Implenia

Poor diversification

The 3 months correlation between Calida and Implenia is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Calida Holding AG and Implenia AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implenia AG and Calida Holding 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 Calida Holding AG are associated (or correlated) with Implenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implenia AG has no effect on the direction of Calida Holding i.e., Calida Holding and Implenia go up and down completely randomly.

Pair Corralation between Calida Holding and Implenia

Assuming the 90 days trading horizon Calida Holding AG is expected to under-perform the Implenia. In addition to that, Calida Holding is 1.99 times more volatile than Implenia AG. It trades about -0.08 of its total potential returns per unit of risk. Implenia AG is currently generating about 0.02 per unit of volatility. If you would invest  3,020  in Implenia AG on September 16, 2024 and sell it today you would earn a total of  30.00  from holding Implenia AG or generate 0.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Calida Holding AG  vs.  Implenia AG

Calida Holding AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calida Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Implenia AG

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Implenia AG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Implenia is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Calida Holding and Implenia

The main advantage of trading using opposite Calida Holding and Implenia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calida Holding position performs unexpectedly, Implenia 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 Implenia will offset losses from the drop in Implenia's long position.

The idea behind Calida Holding AG and Implenia AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.