Correlation Between Coor Service and Continental Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Coor Service 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 Coor Service and Continental Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and Continental Aktiengesellschaft, you can compare the effects of market volatilities on Coor Service 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 Coor Service with a short position of Continental Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Continental Aktiengesellscha.
Diversification Opportunities for Coor Service and Continental Aktiengesellscha
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coor and Continental is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and Continental Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental Aktiengesellscha and Coor Service 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 Coor Service Management 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 Coor Service i.e., Coor Service and Continental Aktiengesellscha go up and down completely randomly.
Pair Corralation between Coor Service and Continental Aktiengesellscha
Assuming the 90 days horizon Coor Service Management is expected to generate 4.4 times more return on investment than Continental Aktiengesellscha. However, Coor Service is 4.4 times more volatile than Continental Aktiengesellschaft. It trades about 0.06 of its potential returns per unit of risk. Continental Aktiengesellschaft is currently generating about 0.01 per unit of risk. If you would invest 122.00 in Coor Service Management on October 21, 2024 and sell it today you would earn a total of 146.00 from holding Coor Service Management or generate 119.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Coor Service Management vs. Continental Aktiengesellschaft
Performance |
Timeline |
Coor Service Management |
Continental Aktiengesellscha |
Coor Service and Continental Aktiengesellscha Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coor Service and Continental Aktiengesellscha
The main advantage of trading using opposite Coor Service and Continental Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service 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.Coor Service vs. Nomad Foods | Coor Service vs. EBRO FOODS | Coor Service vs. Tyson Foods | Coor Service vs. Synchrony Financial |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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