Correlation Between SYSTEMAIR and Vonovia SE

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Can any of the company-specific risk be diversified away by investing in both SYSTEMAIR and Vonovia SE 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 SYSTEMAIR and Vonovia SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SYSTEMAIR AB and Vonovia SE, you can compare the effects of market volatilities on SYSTEMAIR and Vonovia SE 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 SYSTEMAIR with a short position of Vonovia SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYSTEMAIR and Vonovia SE.

Diversification Opportunities for SYSTEMAIR and Vonovia SE

SYSTEMAIRVonoviaDiversified AwaySYSTEMAIRVonoviaDiversified Away100%
0.2
  Correlation Coefficient

Modest diversification

The 3 months correlation between SYSTEMAIR and Vonovia is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SYSTEMAIR AB and Vonovia SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vonovia SE and SYSTEMAIR 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 SYSTEMAIR AB are associated (or correlated) with Vonovia SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vonovia SE has no effect on the direction of SYSTEMAIR i.e., SYSTEMAIR and Vonovia SE go up and down completely randomly.

Pair Corralation between SYSTEMAIR and Vonovia SE

Assuming the 90 days trading horizon SYSTEMAIR AB is expected to generate 1.54 times more return on investment than Vonovia SE. However, SYSTEMAIR is 1.54 times more volatile than Vonovia SE. It trades about 0.01 of its potential returns per unit of risk. Vonovia SE is currently generating about -0.09 per unit of risk. If you would invest  714.00  in SYSTEMAIR AB on October 26, 2024 and sell it today you would earn a total of  0.00  from holding SYSTEMAIR AB or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SYSTEMAIR AB  vs.  Vonovia SE

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -1001020
JavaScript chart by amCharts 3.21.1552SA VNA
       Timeline  
SYSTEMAIR AB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SYSTEMAIR AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SYSTEMAIR is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan77.588.5
Vonovia SE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Vonovia SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan272829303132

SYSTEMAIR and Vonovia SE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.87-5.89-3.92-1.940.01.923.95.897.879.85 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.1552SA VNA
       Returns  

Pair Trading with SYSTEMAIR and Vonovia SE

The main advantage of trading using opposite SYSTEMAIR and Vonovia SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SYSTEMAIR position performs unexpectedly, Vonovia SE 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 Vonovia SE will offset losses from the drop in Vonovia SE's long position.
The idea behind SYSTEMAIR AB and Vonovia SE 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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