Correlation Between Straumann Holding and Siegfried Holding
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and Siegfried 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 Straumann Holding and Siegfried Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and Siegfried Holding, you can compare the effects of market volatilities on Straumann Holding and Siegfried 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 Straumann Holding with a short position of Siegfried Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and Siegfried Holding.
Diversification Opportunities for Straumann Holding and Siegfried Holding
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Straumann and Siegfried is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and Siegfried Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siegfried Holding and Straumann 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 Straumann Holding AG are associated (or correlated) with Siegfried Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siegfried Holding has no effect on the direction of Straumann Holding i.e., Straumann Holding and Siegfried Holding go up and down completely randomly.
Pair Corralation between Straumann Holding and Siegfried Holding
Assuming the 90 days trading horizon Straumann Holding AG is expected to generate 1.38 times more return on investment than Siegfried Holding. However, Straumann Holding is 1.38 times more volatile than Siegfried Holding. It trades about 0.0 of its potential returns per unit of risk. Siegfried Holding is currently generating about -0.11 per unit of risk. If you would invest 11,890 in Straumann Holding AG on September 12, 2024 and sell it today you would lose (75.00) from holding Straumann Holding AG or give up 0.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Straumann Holding AG vs. Siegfried Holding
Performance |
Timeline |
Straumann Holding |
Siegfried Holding |
Straumann Holding and Siegfried Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Straumann Holding and Siegfried Holding
The main advantage of trading using opposite Straumann Holding and Siegfried Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, Siegfried 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 Siegfried Holding will offset losses from the drop in Siegfried Holding's long position.Straumann Holding vs. Sonova H Ag | Straumann Holding vs. Sika AG | Straumann Holding vs. Lonza Group AG | Straumann Holding vs. Givaudan SA |
Siegfried Holding vs. Bachem Holding AG | Siegfried Holding vs. VAT Group AG | Siegfried Holding vs. Tecan Group AG | Siegfried Holding vs. Straumann 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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