Correlation Between Warteck Invest and Plazza AG

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

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

Diversification Opportunities for Warteck Invest and Plazza AG

0.86

Correlation Coefficient

Warteck Invest  Plazza AG

Very poor diversification

The 3 months correlation between Warteck and Plazza is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Warteck Invest and Plazza AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plazza AG and Warteck Invest 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 Warteck Invest are associated (or correlated) with Plazza AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plazza AG has no effect on the direction of Warteck Invest i.e., Warteck Invest and Plazza AG go up and down completely randomly.

Pair Corralation between Warteck Invest and Plazza AG

Assuming the 90 days trading horizon Warteck Invest is expected to generate 1.51 times less return on investment than Plazza AG. In addition to that, Warteck Invest is 1.44 times more volatile than Plazza AG. It trades about 0.19 of its total potential returns per unit of risk. Plazza AG is currently generating about 0.42 per unit of volatility. If you would invest  35,300  in Plazza AG on April 23, 2025 and sell it today you would earn a total of  4,600  from holding Plazza AG or generate 13.03% return on investment over 90 days.

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

Warteck Invest  vs.  Plazza AG

Warteck Invest

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Warteck Invest are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Warteck Invest may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Plazza AG

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Plazza AG are ranked lower than 33 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Plazza AG showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Warteck Invest and Plazza AG

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

The idea behind Warteck Invest and Plazza 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..