Correlation Between Haulotte Group and Schneider Electric

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

By analyzing existing cross correlation between Haulotte Group SA and Schneider Electric SE, you can compare the effects of market volatilities on Haulotte Group and Schneider Electric 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 Haulotte Group with a short position of Schneider Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haulotte Group and Schneider Electric.

Diversification Opportunities for Haulotte Group and Schneider Electric

0.01

Correlation Coefficient

Haulotte Group  Schneider Electric

Significant diversification

The 3 months correlation between Haulotte and Schneider is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Haulotte Group SA and Schneider Electric SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schneider Electric and Haulotte Group 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 Haulotte Group SA are associated (or correlated) with Schneider Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schneider Electric has no effect on the direction of Haulotte Group i.e., Haulotte Group and Schneider Electric go up and down completely randomly.

Pair Corralation between Haulotte Group and Schneider Electric

Assuming the 90 days trading horizon Haulotte Group is expected to generate 1.78 times less return on investment than Schneider Electric. But when comparing it to its historical volatility, Haulotte Group SA is 1.25 times less risky than Schneider Electric. It trades about 0.23 of its potential returns per unit of risk. Schneider Electric SE is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  23,910  in Schneider Electric SE on October 22, 2024 and sell it today you would earn a total of  1,985  from holding Schneider Electric SE or generate 8.3% return on investment over 90 days.

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

Haulotte Group SA  vs.  Schneider Electric SE

Haulotte Group SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Haulotte Group SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Schneider Electric

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Schneider Electric SE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Schneider Electric may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Haulotte Group and Schneider Electric

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

The idea behind Haulotte Group SA and Schneider Electric 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.