Correlation Between EMS CHEMIE and Compagnie Financiere

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

By analyzing existing cross correlation between EMS CHEMIE HOLDING AG and Compagnie Financiere Tradition, you can compare the effects of market volatilities on EMS CHEMIE and Compagnie Financiere 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 EMS CHEMIE with a short position of Compagnie Financiere. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMS CHEMIE and Compagnie Financiere.

Diversification Opportunities for EMS CHEMIE and Compagnie Financiere

0.0

Correlation Coefficient

EMS CHEMIE  Compagnie Financiere

Pay attention - limited upside

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

Pair Corralation between EMS CHEMIE and Compagnie Financiere

If you would invest  59,100  in EMS CHEMIE HOLDING AG on April 24, 2025 and sell it today you would earn a total of  5,950  from holding EMS CHEMIE HOLDING AG or generate 10.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

EMS CHEMIE HOLDING AG  vs.  Compagnie Financiere Tradition

EMS CHEMIE HOLDING

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EMS CHEMIE HOLDING AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, EMS CHEMIE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Compagnie Financiere

Risk-Adjusted Performance

Good

Over the last 90 days Compagnie Financiere Tradition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Compagnie Financiere is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with EMS CHEMIE and Compagnie Financiere

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

The idea behind EMS CHEMIE HOLDING AG and Compagnie Financiere Tradition 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.