Correlation Between Schweiter Technologies and Vulcan Materials

Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies and Vulcan Materials 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 Vulcan Materials 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 Vulcan Materials, you can compare the effects of market volatilities on Schweiter Technologies and Vulcan Materials 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 Vulcan Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and Vulcan Materials.

Diversification Opportunities for Schweiter Technologies and Vulcan Materials

0.0

Correlation Coefficient

Schweiter Technologies  Vulcan Materials

Pay attention - limited upside

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

Pair Corralation between Schweiter Technologies and Vulcan Materials

If you would invest  26,287  in Vulcan Materials on October 24, 2024 and sell it today you would earn a total of  723.00  from holding Vulcan Materials or generate 2.75% return on investment over 90 days.

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

Schweiter Technologies AG  vs.  Vulcan Materials

Schweiter Technologies

Risk-Adjusted Performance

0 of 100

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.

Vulcan Materials

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vulcan Materials are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent primary indicators, Vulcan Materials may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Schweiter Technologies and Vulcan Materials

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

The idea behind Schweiter Technologies AG and Vulcan Materials 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.