Correlation Between CPENPO CPEN and Walter Meier

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

By analyzing existing cross correlation between CPENPO CPEN P and Walter Meier AG, you can compare the effects of market volatilities on CPENPO CPEN and Walter Meier 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 CPENPO CPEN with a short position of Walter Meier. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPENPO CPEN and Walter Meier.

Diversification Opportunities for CPENPO CPEN and Walter Meier

0.0

Correlation Coefficient

CPENPO CPEN  Walter Meier

Pay attention - limited upside

The 3 months correlation between CPENPO and Walter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CPENPO CPEN P and Walter Meier AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walter Meier AG and CPENPO CPEN 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 CPENPO CPEN P are associated (or correlated) with Walter Meier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walter Meier AG has no effect on the direction of CPENPO CPEN i.e., CPENPO CPEN and Walter Meier go up and down completely randomly.

Pair Corralation between CPENPO CPEN and Walter Meier

If you would invest (100.00) in Walter Meier AG on October 8, 2024 and sell it today you would earn a total of  100.00  from holding Walter Meier AG or generate -100.0% return on investment over 90 days.

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

CPENPO CPEN P  vs.  Walter Meier AG

CPENPO CPEN P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CPENPO CPEN P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, CPENPO CPEN is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Walter Meier AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Walter Meier AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Walter Meier is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CPENPO CPEN and Walter Meier

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

The idea behind CPENPO CPEN P and Walter Meier AG 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.