Correlation Between Sif Holding and Kendrion

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

By analyzing existing cross correlation between Sif Holding NV and Kendrion NV, you can compare the effects of market volatilities on Sif Holding and Kendrion 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 Sif Holding with a short position of Kendrion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sif Holding and Kendrion.

Diversification Opportunities for Sif Holding and Kendrion

-0.63

Correlation Coefficient

Sif Holding  Kendrion

Excellent diversification

The 3 months correlation between Sif and Kendrion is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sif Holding NV and Kendrion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kendrion NV and Sif 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 Sif Holding NV are associated (or correlated) with Kendrion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kendrion NV has no effect on the direction of Sif Holding i.e., Sif Holding and Kendrion go up and down completely randomly.

Pair Corralation between Sif Holding and Kendrion

Assuming the 90 days trading horizon Sif Holding NV is expected to under-perform the Kendrion. In addition to that, Sif Holding is 1.38 times more volatile than Kendrion NV. It trades about -0.16 of its total potential returns per unit of risk. Kendrion NV is currently generating about 0.08 per unit of volatility. If you would invest  1,020  in Kendrion NV on December 30, 2024 and sell it today you would earn a total of  94.00  from holding Kendrion NV or generate 9.22% return on investment over 90 days.

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

Sif Holding NV  vs.  Kendrion NV

Sif Holding NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sif Holding NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Kendrion NV

Risk-Adjusted Performance

Modest

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

Pair Trading with Sif Holding and Kendrion

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

The idea behind Sif Holding NV and Kendrion NV 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.