Correlation Between Schweiter Technologies and 09951LAA1

Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies and 09951LAA1 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 Schweiter Technologies and 09951LAA1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Schweiter Technologies AG and BOOZ ALLEN HAMILTON, you can compare the effects of market volatilities on Schweiter Technologies and 09951LAA1 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 Schweiter Technologies with a short position of 09951LAA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and 09951LAA1.

Diversification Opportunities for Schweiter Technologies and 09951LAA1

0.0

Correlation Coefficient

Schweiter Technologies  09951LAA1

Pay attention - limited upside

The 3 months correlation between Schweiter and 09951LAA1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Schweiter Technologies AG and BOOZ ALLEN HAMILTON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOOZ ALLEN HAMILTON and Schweiter Technologies 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 Schweiter Technologies AG are associated (or correlated) with 09951LAA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOOZ ALLEN HAMILTON has no effect on the direction of Schweiter Technologies i.e., Schweiter Technologies and 09951LAA1 go up and down completely randomly.

Pair Corralation between Schweiter Technologies and 09951LAA1

If you would invest  76,866  in Schweiter Technologies AG on December 26, 2024 and sell it today you would earn a total of  0.00  from holding Schweiter Technologies AG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	83.61%
Values	Daily Returns

Schweiter Technologies AG  vs.  BOOZ ALLEN HAMILTON

Schweiter Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Schweiter Technologies AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Schweiter Technologies is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

BOOZ ALLEN HAMILTON

Risk-Adjusted Performance

Very Weak

Over the last 90 days BOOZ ALLEN HAMILTON has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 09951LAA1 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Schweiter Technologies and 09951LAA1

The main advantage of trading using opposite Schweiter Technologies and 09951LAA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweiter Technologies position performs unexpectedly, 09951LAA1 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 09951LAA1 will offset losses from the drop in 09951LAA1's long position.

The idea behind Schweiter Technologies AG and BOOZ ALLEN HAMILTON 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.