Correlation Between Calida Holding and Swatch Group
Can any of the company-specific risk be diversified away by investing in both Calida Holding and Swatch 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 Calida Holding and Swatch Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calida Holding AG and Swatch Group AG, you can compare the effects of market volatilities on Calida Holding and Swatch 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 Calida Holding with a short position of Swatch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calida Holding and Swatch Group.
Diversification Opportunities for Calida Holding and Swatch Group
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calida and Swatch is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Calida Holding AG and Swatch Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swatch Group AG and Calida 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 Calida Holding AG are associated (or correlated) with Swatch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swatch Group AG has no effect on the direction of Calida Holding i.e., Calida Holding and Swatch Group go up and down completely randomly.
Pair Corralation between Calida Holding and Swatch Group
Assuming the 90 days trading horizon Calida Holding AG is expected to under-perform the Swatch Group. In addition to that, Calida Holding is 1.43 times more volatile than Swatch Group AG. It trades about -0.05 of its total potential returns per unit of risk. Swatch Group AG is currently generating about 0.09 per unit of volatility. If you would invest 2,767 in Swatch Group AG on April 24, 2025 and sell it today you would earn a total of 211.00 from holding Swatch Group AG or generate 7.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Calida Holding AG vs. Swatch Group AG
Performance |
Timeline |
Calida Holding AG |
Swatch Group AG |
Calida Holding and Swatch Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calida Holding and Swatch Group
The main advantage of trading using opposite Calida Holding and Swatch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calida Holding position performs unexpectedly, Swatch 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 Swatch Group will offset losses from the drop in Swatch Group's long position.Calida Holding vs. Swatch Group AG | Calida Holding vs. Helvetia Holding AG | Calida Holding vs. Emmi AG | Calida Holding vs. Swissquote Group Holding |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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