Correlation Between LandisGyr Group and Liechtensteinische
Can any of the company-specific risk be diversified away by investing in both LandisGyr Group and Liechtensteinische 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 LandisGyr Group and Liechtensteinische into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LandisGyr Group AG and Liechtensteinische Landesbank AG, you can compare the effects of market volatilities on LandisGyr Group and Liechtensteinische 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 LandisGyr Group with a short position of Liechtensteinische. Check out your portfolio center. Please also check ongoing floating volatility patterns of LandisGyr Group and Liechtensteinische.
Diversification Opportunities for LandisGyr Group and Liechtensteinische
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LandisGyr and Liechtensteinische is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding LandisGyr Group AG and Liechtensteinische Landesbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liechtensteinische and LandisGyr 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 LandisGyr Group AG are associated (or correlated) with Liechtensteinische. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liechtensteinische has no effect on the direction of LandisGyr Group i.e., LandisGyr Group and Liechtensteinische go up and down completely randomly.
Pair Corralation between LandisGyr Group and Liechtensteinische
Assuming the 90 days trading horizon LandisGyr Group AG is expected to under-perform the Liechtensteinische. In addition to that, LandisGyr Group is 2.5 times more volatile than Liechtensteinische Landesbank AG. It trades about -0.29 of its total potential returns per unit of risk. Liechtensteinische Landesbank AG is currently generating about -0.1 per unit of volatility. If you would invest 7,320 in Liechtensteinische Landesbank AG on September 25, 2024 and sell it today you would lose (320.00) from holding Liechtensteinische Landesbank AG or give up 4.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
LandisGyr Group AG vs. Liechtensteinische Landesbank
Performance |
Timeline |
LandisGyr Group AG |
Liechtensteinische |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LandisGyr Group and Liechtensteinische Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LandisGyr Group and Liechtensteinische
The main advantage of trading using opposite LandisGyr Group and Liechtensteinische positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LandisGyr Group position performs unexpectedly, Liechtensteinische 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 Liechtensteinische will offset losses from the drop in Liechtensteinische's long position.LandisGyr Group vs. mobilezone ag | LandisGyr Group vs. Zurich Insurance Group | LandisGyr Group vs. Hypothekarbank Lenzburg AG | LandisGyr Group vs. Schweizerische Nationalbank |
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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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