Correlation Between Straumann Holding and Hitechpros

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

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

Diversification Opportunities for Straumann Holding and Hitechpros

0.27

Correlation Coefficient

Straumann Holding  Hitechpros

Modest diversification

The 3 months correlation between Straumann and Hitechpros is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and Hitechpros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitechpros and Straumann 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 Straumann Holding AG are associated (or correlated) with Hitechpros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitechpros has no effect on the direction of Straumann Holding i.e., Straumann Holding and Hitechpros go up and down completely randomly.

Pair Corralation between Straumann Holding and Hitechpros

Assuming the 90 days trading horizon Straumann Holding AG is expected to generate 0.77 times more return on investment than Hitechpros. However, Straumann Holding AG is 1.29 times less risky than Hitechpros. It trades about 0.09 of its potential returns per unit of risk. Hitechpros is currently generating about 0.0 per unit of risk. If you would invest  11,465  in Straumann Holding AG on November 29, 2024 and sell it today you would earn a total of  925.00  from holding Straumann Holding AG or generate 8.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.08%
Values	Daily Returns

Straumann Holding AG  vs.  Hitechpros

Straumann Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Straumann Holding AG are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Straumann Holding may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Hitechpros

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hitechpros has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Hitechpros is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Straumann Holding and Hitechpros

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

The idea behind Straumann Holding AG and Hitechpros 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 Commodity Directory module to find actively traded commodities issued by global exchanges.