Correlation Between Continental Aktiengesellscha and Continental Aktiengesellscha

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

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

Diversification Opportunities for Continental Aktiengesellscha and Continental Aktiengesellscha

0.99

Correlation Coefficient

Continental Aktiengesellscha  Continental Aktiengesellscha

No risk reduction

The 3 months correlation between Continental and Continental is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Continental Aktiengesellschaft and Continental Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental Aktiengesellscha and Continental Aktiengesellscha 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 Continental Aktiengesellschaft are associated (or correlated) with Continental Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Continental Aktiengesellscha has no effect on the direction of Continental Aktiengesellscha i.e., Continental Aktiengesellscha and Continental Aktiengesellscha go up and down completely randomly.

Pair Corralation between Continental Aktiengesellscha and Continental Aktiengesellscha

Assuming the 90 days trading horizon Continental Aktiengesellscha is expected to generate 1.06 times less return on investment than Continental Aktiengesellscha. But when comparing it to its historical volatility, Continental Aktiengesellschaft is 1.1 times less risky than Continental Aktiengesellscha. It trades about 0.15 of its potential returns per unit of risk. Continental Aktiengesellschaft is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  5,684  in Continental Aktiengesellschaft on October 1, 2024 and sell it today you would earn a total of  784.00  from holding Continental Aktiengesellschaft or generate 13.79% return on investment over 90 days.

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

Continental Aktiengesellschaft  vs.  Continental Aktiengesellschaft

Continental Aktiengesellscha

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Continental Aktiengesellschaft are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Continental Aktiengesellscha unveiled solid returns over the last few months and may actually be approaching a breakup point.

Continental Aktiengesellscha

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Continental Aktiengesellschaft are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Continental Aktiengesellscha reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Continental Aktiengesellscha and Continental Aktiengesellscha

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

The idea behind Continental Aktiengesellschaft and Continental Aktiengesellschaft 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.