Correlation Between Siegfried Holding and Ypsomed Holding

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

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

Diversification Opportunities for Siegfried Holding and Ypsomed Holding

-0.3

Correlation Coefficient

Siegfried Holding  Ypsomed Holding

Very good diversification

The 3 months correlation between Siegfried and Ypsomed is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Siegfried Holding and Ypsomed Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ypsomed Holding AG and Siegfried 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 Siegfried Holding are associated (or correlated) with Ypsomed Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ypsomed Holding AG has no effect on the direction of Siegfried Holding i.e., Siegfried Holding and Ypsomed Holding go up and down completely randomly.

Pair Corralation between Siegfried Holding and Ypsomed Holding

Assuming the 90 days trading horizon Siegfried Holding is expected to under-perform the Ypsomed Holding. In addition to that, Siegfried Holding is 1.07 times more volatile than Ypsomed Holding AG. It trades about -0.02 of its total potential returns per unit of risk. Ypsomed Holding AG is currently generating about 0.26 per unit of volatility. If you would invest  33,511  in Ypsomed Holding AG on April 24, 2025 and sell it today you would earn a total of  8,839  from holding Ypsomed Holding AG or generate 26.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Siegfried Holding  vs.  Ypsomed Holding AG

Siegfried Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Siegfried Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Siegfried Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Ypsomed Holding AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ypsomed Holding AG are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Ypsomed Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Siegfried Holding and Ypsomed Holding

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

The idea behind Siegfried Holding and Ypsomed Holding 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.