Correlation Between Pictet Ch and Immofonds

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

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

Diversification Opportunities for Pictet Ch and Immofonds

-0.35

Correlation Coefficient

Pictet Ch  Immofonds

Very good diversification

The 3 months correlation between Pictet and Immofonds is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pictet Ch Precious and Immofonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofonds and Pictet Ch 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 Pictet Ch Precious are associated (or correlated) with Immofonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofonds has no effect on the direction of Pictet Ch i.e., Pictet Ch and Immofonds go up and down completely randomly.

Pair Corralation between Pictet Ch and Immofonds

Assuming the 90 days trading horizon Pictet Ch Precious is expected to generate 0.58 times more return on investment than Immofonds. However, Pictet Ch Precious is 1.72 times less risky than Immofonds. It trades about 0.48 of its potential returns per unit of risk. Immofonds is currently generating about 0.08 per unit of risk. If you would invest  24,042  in Pictet Ch Precious on October 20, 2024 and sell it today you would earn a total of  1,140  from holding Pictet Ch Precious or generate 4.74% return on investment over 90 days.

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

Pictet Ch Precious  vs.  Immofonds

Pictet Ch Precious

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pictet Ch Precious has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Pictet Ch is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Immofonds

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Immofonds are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Immofonds may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Pictet Ch and Immofonds

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

The idea behind Pictet Ch Precious and Immofonds 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.