Correlation Between Tecan Group and Comet Holding

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

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

Diversification Opportunities for Tecan Group and Comet Holding

0.37

Correlation Coefficient

Tecan Group  Comet Holding

Weak diversification

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

Pair Corralation between Tecan Group and Comet Holding

Assuming the 90 days trading horizon Tecan Group is expected to generate 3.06 times less return on investment than Comet Holding. In addition to that, Tecan Group is 1.04 times more volatile than Comet Holding AG. It trades about 0.09 of its total potential returns per unit of risk. Comet Holding AG is currently generating about 0.29 per unit of volatility. If you would invest  20,300  in Comet Holding AG on April 22, 2025 and sell it today you would earn a total of  8,500  from holding Comet Holding AG or generate 41.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Tecan Group AG  vs.  Comet Holding AG

Tecan Group AG

Risk-Adjusted Performance

OK

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

Comet Holding AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Comet Holding AG are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Comet Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tecan Group and Comet Holding

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

The idea behind Tecan Group AG and Comet 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.

Check out your portfolio center.

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 Transaction History module to view history of all your transactions and understand their impact on performance.