Can any of the company-specific risk be diversified away by investing in both Hensoldt and Chocoladefabriken 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 Hensoldt and Chocoladefabriken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hensoldt Ag and Chocoladefabriken Lindt Sprngli, you can compare the effects of market volatilities on Hensoldt and Chocoladefabriken 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 Hensoldt with a short position of Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hensoldt and Chocoladefabriken.
Diversification Opportunities for Hensoldt and Chocoladefabriken
The 3 months correlation between Hensoldt and Chocoladefabriken is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hensoldt Ag and Chocoladefabriken Lindt Sprngl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt and Hensoldt 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 Hensoldt Ag are associated (or correlated) with Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Hensoldt i.e., Hensoldt and Chocoladefabriken go up and down completely randomly.
Pair Corralation between Hensoldt and Chocoladefabriken
If you would invest 631,500 in Chocoladefabriken Lindt Sprngli on March 6, 2024 and sell it today you would earn a total of 0.00 from holding Chocoladefabriken Lindt Sprngli or generate 0.0% return on investment over 90 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Hensoldt Ag are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Hensoldt may actually be approaching a critical reversion point that can send shares even higher in July 2024.
Compared to the overall equity markets, risk-adjusted returns on investments in Chocoladefabriken Lindt Sprngli are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Chocoladefabriken is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.