Correlation Between Schindler and Emmi AG

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

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

Diversification Opportunities for Schindler and Emmi AG

0.37

Correlation Coefficient

Schindler  Emmi AG

Weak diversification

The 3 months correlation between Schindler and Emmi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Schindler Ps and Emmi AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emmi AG and Schindler 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 Ps are associated (or correlated) with Emmi AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emmi AG has no effect on the direction of Schindler i.e., Schindler and Emmi AG go up and down completely randomly.

Pair Corralation between Schindler and Emmi AG

Assuming the 90 days trading horizon Schindler Ps is expected to generate 1.54 times more return on investment than Emmi AG. However, Schindler is 1.54 times more volatile than Emmi AG. It trades about 0.11 of its potential returns per unit of risk. Emmi AG is currently generating about -0.06 per unit of risk. If you would invest  27,300  in Schindler Ps on April 23, 2025 and sell it today you would earn a total of  2,740  from holding Schindler Ps or generate 10.04% return on investment over 90 days.

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

Schindler Ps  vs.  Emmi AG

Schindler Ps

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Schindler Ps are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Schindler may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Emmi AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Emmi AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Emmi 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 Schindler and Emmi AG

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

The idea behind Schindler Ps and Emmi 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.