Correlation Between Straumann Holding and Chocoladefabriken

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

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

Diversification Opportunities for Straumann Holding and Chocoladefabriken

0.16

Correlation Coefficient

Straumann Holding  Chocoladefabriken

Average diversification

The 3 months correlation between Straumann and Chocoladefabriken is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt and Straumann 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 Straumann Holding AG are associated (or correlated) with Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Straumann Holding i.e., Straumann Holding and Chocoladefabriken go up and down completely randomly.

Pair Corralation between Straumann Holding and Chocoladefabriken

Assuming the 90 days trading horizon Straumann Holding is expected to generate 1.43 times less return on investment than Chocoladefabriken. In addition to that, Straumann Holding is 1.29 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about 0.06 of its total potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about 0.12 per unit of volatility. If you would invest  11,500,000  in Chocoladefabriken Lindt Spruengli on April 25, 2025 and sell it today you would earn a total of  1,060,000  from holding Chocoladefabriken Lindt Spruengli or generate 9.22% return on investment over 90 days.

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

Straumann Holding AG  vs.  Chocoladefabriken Lindt Spruen

Straumann Holding

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Straumann Holding AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Straumann Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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.

Pair Trading with Straumann Holding and Chocoladefabriken

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

The idea behind Straumann Holding AG and Chocoladefabriken Lindt Spruengli 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.