Correlation Between Chocoladefabriken and Seeing Machines

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

By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and Seeing Machines Limited, you can compare the effects of market volatilities on Chocoladefabriken and Seeing Machines 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 Chocoladefabriken with a short position of Seeing Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Seeing Machines.

Diversification Opportunities for Chocoladefabriken and Seeing Machines

0.0

Correlation Coefficient

Chocoladefabriken  Seeing Machines

Pay attention - limited upside

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

Pair Corralation between Chocoladefabriken and Seeing Machines

If you would invest  11,509,000  in Chocoladefabriken Lindt Spruengli on April 17, 2025 and sell it today you would earn a total of  1,561,000  from holding Chocoladefabriken Lindt Spruengli or generate 13.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Chocoladefabriken Lindt Spruen  vs.  Seeing Machines Limited

Chocoladefabriken Lindt

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chocoladefabriken Lindt Spruengli are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Chocoladefabriken unveiled solid returns over the last few months and may actually be approaching a breakup point.

Seeing Machines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seeing Machines Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Seeing Machines is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Chocoladefabriken and Seeing Machines

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

The idea behind Chocoladefabriken Lindt Spruengli and Seeing Machines Limited 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 Stocks Directory module to find actively traded stocks across global markets.