Correlation Between Leonteq AG and Partners Group
Can any of the company-specific risk be diversified away by investing in both Leonteq AG and Partners Group 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 Leonteq AG and Partners Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leonteq AG and Partners Group Holding, you can compare the effects of market volatilities on Leonteq AG and Partners Group 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 Leonteq AG with a short position of Partners Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leonteq AG and Partners Group.
Diversification Opportunities for Leonteq AG and Partners Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Leonteq and Partners is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Leonteq AG and Partners Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Group Holding and Leonteq AG 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 Leonteq AG are associated (or correlated) with Partners Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Group Holding has no effect on the direction of Leonteq AG i.e., Leonteq AG and Partners Group go up and down completely randomly.
Pair Corralation between Leonteq AG and Partners Group
Assuming the 90 days trading horizon Leonteq AG is expected to under-perform the Partners Group. In addition to that, Leonteq AG is 1.33 times more volatile than Partners Group Holding. It trades about -0.16 of its total potential returns per unit of risk. Partners Group Holding is currently generating about -0.15 per unit of volatility. If you would invest 125,250 in Partners Group Holding on January 30, 2024 and sell it today you would lose (5,750) from holding Partners Group Holding or give up 4.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Leonteq AG vs. Partners Group Holding
Performance |
Timeline |
Leonteq AG |
Partners Group Holding |
Leonteq AG and Partners Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Leonteq AG and Partners Group
The main advantage of trading using opposite Leonteq AG and Partners Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leonteq AG position performs unexpectedly, Partners Group 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 Partners Group will offset losses from the drop in Partners Group's long position.Leonteq AG vs. Sika AG | Leonteq AG vs. Swiss Life Holding | Leonteq AG vs. Givaudan SA | Leonteq AG vs. Lonza Group AG |
Partners Group vs. Sika AG | Partners Group vs. Swiss Life Holding | Partners Group vs. Givaudan SA | Partners Group vs. Lonza Group 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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