Correlation Between Gurit Holding and Sika AG

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

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

Diversification Opportunities for Gurit Holding and Sika AG

0.0

Correlation Coefficient

Gurit Holding  Sika AG

Pay attention - limited upside

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

Pair Corralation between Gurit Holding and Sika AG

If you would invest  19,780  in Sika AG on April 23, 2025 and sell it today you would earn a total of  500.00  from holding Sika AG or generate 2.53% return on investment over 90 days.

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

Gurit Holding AG  vs.  Sika AG

Gurit Holding AG

Risk-Adjusted Performance

Very Weak

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

Sika AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sika AG are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Sika AG 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 Gurit Holding and Sika AG

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

The idea behind Gurit Holding AG and Sika 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.