Correlation Between Chocoladefabriken and Airesis SA

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

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

Diversification Opportunities for Chocoladefabriken and Airesis SA

-0.63

Correlation Coefficient

Chocoladefabriken  Airesis SA

Excellent diversification

The 3 months correlation between Chocoladefabriken and Airesis is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Airesis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airesis SA and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli are associated (or correlated) with Airesis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airesis SA has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Airesis SA go up and down completely randomly.

Pair Corralation between Chocoladefabriken and Airesis SA

Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to generate 0.11 times more return on investment than Airesis SA. However, Chocoladefabriken Lindt Spruengli is 9.4 times less risky than Airesis SA. It trades about 0.12 of its potential returns per unit of risk. Airesis SA is currently generating about -0.06 per unit of risk. If you would invest  11,580,000  in Chocoladefabriken Lindt Spruengli on April 24, 2025 and sell it today you would earn a total of  1,040,000  from holding Chocoladefabriken Lindt Spruengli or generate 8.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	90.32%
Values	Daily Returns

Chocoladefabriken Lindt Spruen  vs.  Airesis SA

Chocoladefabriken Lindt

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Chocoladefabriken Lindt Spruengli are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Chocoladefabriken may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Airesis SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Airesis SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Chocoladefabriken and Airesis SA

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

The idea behind Chocoladefabriken Lindt Spruengli and Airesis SA 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.