Correlation Between Walter Meier and Kudelski

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

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

Diversification Opportunities for Walter Meier and Kudelski

0.0

Correlation Coefficient

Walter Meier  Kudelski

Pay attention - limited upside

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

Pair Corralation between Walter Meier and Kudelski

If you would invest  0.00  in Walter Meier AG on December 22, 2024 and sell it today you would earn a total of  0.00  from holding Walter Meier AG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Walter Meier AG  vs.  Kudelski

Walter Meier AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Walter Meier AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Walter Meier is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Kudelski

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kudelski has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Kudelski is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Walter Meier and Kudelski

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

The idea behind Walter Meier AG and Kudelski 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.