Correlation Between Comet Holding and EFG International

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

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

Diversification Opportunities for Comet Holding and EFG International

0.5

Correlation Coefficient

Comet Holding  EFG International

Very weak diversification

The 3 months correlation between Comet and EFG is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Comet Holding AG and EFG International AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EFG International and Comet 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 Comet Holding AG are associated (or correlated) with EFG International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EFG International has no effect on the direction of Comet Holding i.e., Comet Holding and EFG International go up and down completely randomly.

Pair Corralation between Comet Holding and EFG International

Assuming the 90 days trading horizon Comet Holding is expected to generate 1.54 times less return on investment than EFG International. In addition to that, Comet Holding is 1.51 times more volatile than EFG International AG. It trades about 0.17 of its total potential returns per unit of risk. EFG International AG is currently generating about 0.38 per unit of volatility. If you would invest  1,202  in EFG International AG on April 25, 2025 and sell it today you would earn a total of  462.00  from holding EFG International AG or generate 38.44% return on investment over 90 days.

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

Comet Holding AG  vs.  EFG International AG

Comet Holding AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Comet Holding AG are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Comet Holding showed solid returns over the last few months and may actually be approaching a breakup point.

EFG International

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in EFG International AG are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, EFG International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Comet Holding and EFG International

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

The idea behind Comet Holding AG and EFG International AG 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.