Correlation Between Zebra Technologies and SCHMID Group

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

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

Diversification Opportunities for Zebra Technologies and SCHMID Group

-0.03

Correlation Coefficient

Zebra Technologies  SCHMID Group

Good diversification

The 3 months correlation between Zebra and SCHMID is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies and SCHMID Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCHMID Group NV and Zebra 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 Zebra Technologies are associated (or correlated) with SCHMID Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCHMID Group NV has no effect on the direction of Zebra Technologies i.e., Zebra Technologies and SCHMID Group go up and down completely randomly.

Pair Corralation between Zebra Technologies and SCHMID Group

Given the investment horizon of 90 days Zebra Technologies is expected to under-perform the SCHMID Group. But the stock apears to be less risky and, when comparing its historical volatility, Zebra Technologies is 2.66 times less risky than SCHMID Group. The stock trades about -0.23 of its potential returns per unit of risk. The SCHMID Group NV is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  321.00  in SCHMID Group NV on December 19, 2024 and sell it today you would lose (20.00) from holding SCHMID Group NV or give up 6.23% of portfolio value over 90 days.

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

Zebra Technologies  vs.  SCHMID Group NV

Zebra Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zebra Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

SCHMID Group NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days SCHMID Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, SCHMID Group is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Zebra Technologies and SCHMID Group

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

The idea behind Zebra Technologies and SCHMID Group 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.