Correlation Between U Blox and Chocoladefabriken
Can any of the company-specific risk be diversified away by investing in both U Blox 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 U Blox and Chocoladefabriken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Blox Holding and Chocoladefabriken Lindt Spruengli, you can compare the effects of market volatilities on U Blox 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 U Blox with a short position of Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Blox and Chocoladefabriken.
Diversification Opportunities for U Blox and Chocoladefabriken
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UBXN and Chocoladefabriken is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding U Blox Holding and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt and U Blox 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 U Blox Holding 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 U Blox i.e., U Blox and Chocoladefabriken go up and down completely randomly.
Pair Corralation between U Blox and Chocoladefabriken
Assuming the 90 days trading horizon U Blox Holding is expected to generate 1.69 times more return on investment than Chocoladefabriken. However, U Blox is 1.69 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about 0.17 of its potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about 0.12 per unit of risk. If you would invest 8,170 in U Blox Holding on April 25, 2025 and sell it today you would earn a total of 1,950 from holding U Blox Holding or generate 23.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
U Blox Holding vs. Chocoladefabriken Lindt Spruen
Performance |
Timeline |
U Blox Holding |
Chocoladefabriken Lindt |
U Blox and Chocoladefabriken Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with U Blox and Chocoladefabriken
The main advantage of trading using opposite U Blox and Chocoladefabriken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Blox 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 U Blox Holding 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.Chocoladefabriken vs. Zurich Insurance Group | Chocoladefabriken vs. Logitech International SA | Chocoladefabriken vs. Schweiter Technologies AG | Chocoladefabriken vs. SoftwareONE Holding AG |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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