Correlation Between Interroll Holding and Also Holding
Can any of the company-specific risk be diversified away by investing in both Interroll Holding and Also 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 Interroll Holding and Also Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interroll Holding AG and Also Holding AG, you can compare the effects of market volatilities on Interroll Holding and Also 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 Interroll Holding with a short position of Also Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interroll Holding and Also Holding.
Diversification Opportunities for Interroll Holding and Also Holding
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Interroll and Also is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Interroll Holding AG and Also Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Also Holding AG and Interroll 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 Interroll Holding AG are associated (or correlated) with Also Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Also Holding AG has no effect on the direction of Interroll Holding i.e., Interroll Holding and Also Holding go up and down completely randomly.
Pair Corralation between Interroll Holding and Also Holding
Assuming the 90 days trading horizon Interroll Holding AG is expected to under-perform the Also Holding. But the stock apears to be less risky and, when comparing its historical volatility, Interroll Holding AG is 1.04 times less risky than Also Holding. The stock trades about -0.05 of its potential returns per unit of risk. The Also Holding AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 22,449 in Also Holding AG on December 4, 2024 and sell it today you would earn a total of 5,351 from holding Also Holding AG or generate 23.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Interroll Holding AG vs. Also Holding AG
Performance |
Timeline |
Interroll Holding |
Also Holding AG |
Interroll Holding and Also Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Interroll Holding and Also Holding
The main advantage of trading using opposite Interroll Holding and Also Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interroll Holding position performs unexpectedly, Also 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 Also Holding will offset losses from the drop in Also Holding's long position.Interroll Holding vs. Belimo Holding | Interroll Holding vs. Bachem Holding AG | Interroll Holding vs. VAT Group AG | Interroll Holding vs. Kardex |
Also Holding vs. Bachem Holding AG | Also Holding vs. Comet Holding AG | Also Holding vs. Interroll Holding AG | Also Holding vs. Siegfried Holding |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |