Correlation Between Schindler Holding and Dorma Kaba

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

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

Diversification Opportunities for Schindler Holding and Dorma Kaba

0.78

Correlation Coefficient

Schindler Holding  Dorma Kaba

Poor diversification

The 3 months correlation between Schindler and Dorma is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Schindler Holding AG and Dorma Kaba Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dorma Kaba Holding and Schindler 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 Schindler Holding AG are associated (or correlated) with Dorma Kaba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dorma Kaba Holding has no effect on the direction of Schindler Holding i.e., Schindler Holding and Dorma Kaba go up and down completely randomly.

Pair Corralation between Schindler Holding and Dorma Kaba

Assuming the 90 days trading horizon Schindler Holding is expected to generate 2.04 times less return on investment than Dorma Kaba. In addition to that, Schindler Holding is 1.03 times more volatile than Dorma Kaba Holding. It trades about 0.1 of its total potential returns per unit of risk. Dorma Kaba Holding is currently generating about 0.2 per unit of volatility. If you would invest  64,700  in Dorma Kaba Holding on April 24, 2025 and sell it today you would earn a total of  11,800  from holding Dorma Kaba Holding or generate 18.24% return on investment over 90 days.

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

Schindler Holding AG  vs.  Dorma Kaba Holding

Schindler Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Schindler Holding AG are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Schindler Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Dorma Kaba Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dorma Kaba Holding are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Dorma Kaba showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Schindler Holding and Dorma Kaba

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

The idea behind Schindler Holding AG and Dorma Kaba Holding 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.