Correlation Between Also Holding and Carlo Gavazzi

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

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

Diversification Opportunities for Also Holding and Carlo Gavazzi

0.04

Correlation Coefficient

Also Holding  Carlo Gavazzi

Significant diversification

The 3 months correlation between Also and Carlo is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Also Holding AG and Carlo Gavazzi Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlo Gavazzi Holding and Also 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 Also Holding AG are associated (or correlated) with Carlo Gavazzi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlo Gavazzi Holding has no effect on the direction of Also Holding i.e., Also Holding and Carlo Gavazzi go up and down completely randomly.

Pair Corralation between Also Holding and Carlo Gavazzi

Assuming the 90 days trading horizon Also Holding AG is expected to generate 0.58 times more return on investment than Carlo Gavazzi. However, Also Holding AG is 1.73 times less risky than Carlo Gavazzi. It trades about 0.11 of its potential returns per unit of risk. Carlo Gavazzi Holding is currently generating about -0.01 per unit of risk. If you would invest  24,250  in Also Holding AG on April 25, 2025 and sell it today you would earn a total of  2,700  from holding Also Holding AG or generate 11.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.44%
Values	Daily Returns

Also Holding AG  vs.  Carlo Gavazzi Holding

Also Holding AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Also Holding AG are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Also Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Carlo Gavazzi Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Carlo Gavazzi Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Carlo Gavazzi 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 Also Holding and Carlo Gavazzi

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

The idea behind Also Holding AG and Carlo Gavazzi Holding 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.

Check out your portfolio center.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.