Correlation Between Comet Holding and SIG Combibloc
Can any of the company-specific risk be diversified away by investing in both Comet Holding and SIG Combibloc 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 SIG Combibloc 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 SIG Combibloc Group, you can compare the effects of market volatilities on Comet Holding and SIG Combibloc 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 SIG Combibloc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comet Holding and SIG Combibloc.
Diversification Opportunities for Comet Holding and SIG Combibloc
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comet and SIG is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Comet Holding AG and SIG Combibloc Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIG Combibloc Group 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 SIG Combibloc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIG Combibloc Group has no effect on the direction of Comet Holding i.e., Comet Holding and SIG Combibloc go up and down completely randomly.
Pair Corralation between Comet Holding and SIG Combibloc
Assuming the 90 days trading horizon Comet Holding AG is expected to generate 1.6 times more return on investment than SIG Combibloc. However, Comet Holding is 1.6 times more volatile than SIG Combibloc Group. It trades about 0.27 of its potential returns per unit of risk. SIG Combibloc Group is currently generating about -0.05 per unit of risk. If you would invest 21,160 in Comet Holding AG on April 23, 2025 and sell it today you would earn a total of 7,640 from holding Comet Holding AG or generate 36.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Comet Holding AG vs. SIG Combibloc Group
Performance |
Timeline |
Comet Holding AG |
SIG Combibloc Group |
Comet Holding and SIG Combibloc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Comet Holding and SIG Combibloc
The main advantage of trading using opposite Comet Holding and SIG Combibloc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comet Holding position performs unexpectedly, SIG Combibloc 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 SIG Combibloc will offset losses from the drop in SIG Combibloc's long position.Comet Holding vs. VAT Group AG | Comet Holding vs. Bachem Holding AG | Comet Holding vs. Inficon Holding | Comet Holding vs. Tecan Group AG |
SIG Combibloc vs. VAT Group AG | SIG Combibloc vs. Barry Callebaut AG | SIG Combibloc vs. SGS SA | SIG Combibloc vs. Galenica Sante AG |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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