Correlation Between Investis Holding and Warteck Invest

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

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

Diversification Opportunities for Investis Holding and Warteck Invest

0.86

Correlation Coefficient

Investis Holding  Warteck Invest

Very poor diversification

The 3 months correlation between Investis and Warteck is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Investis Holding SA and Warteck Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warteck Invest and Investis 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 Investis Holding SA are associated (or correlated) with Warteck Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warteck Invest has no effect on the direction of Investis Holding i.e., Investis Holding and Warteck Invest go up and down completely randomly.

Pair Corralation between Investis Holding and Warteck Invest

Assuming the 90 days trading horizon Investis Holding is expected to generate 1.04 times less return on investment than Warteck Invest. In addition to that, Investis Holding is 1.11 times more volatile than Warteck Invest. It trades about 0.15 of its total potential returns per unit of risk. Warteck Invest is currently generating about 0.18 per unit of volatility. If you would invest  188,769  in Warteck Invest on April 24, 2025 and sell it today you would earn a total of  14,231  from holding Warteck Invest or generate 7.54% return on investment over 90 days.

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

Investis Holding SA  vs.  Warteck Invest

Investis Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Investis Holding SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Investis Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Warteck Invest

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Warteck Invest are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Warteck Invest may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Investis Holding and Warteck Invest

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

The idea behind Investis Holding SA and Warteck Invest 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.