Correlation Between CROPENERGIES and SGL CARBON

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

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

Diversification Opportunities for CROPENERGIES and SGL CARBON

0.0
  Correlation Coefficient
CROPENERGIES AG
SGL CARBON SE

Pay attention - limited upside

The 3 months correlation between CROPENERGIES and SGL CARBON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CROPENERGIES AG and SGL CARBON SE O N in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SGL CARBON SE and CROPENERGIES 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 CROPENERGIES AG are associated (or correlated) with SGL CARBON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGL CARBON SE has no effect on the direction of CROPENERGIES i.e., CROPENERGIES and SGL CARBON go up and down completely randomly.

Pair Corralation between CROPENERGIES and SGL CARBON

If you would invest (100.00)  in SGL CARBON SE on April 27, 2021 and sell it today you would earn a total of  100.00  from holding SGL CARBON SE or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

CROPENERGIES AG  vs.  SGL CARBON SE O N

 Performance (%) 
      Timeline 
CROPENERGIES AG 
 CROPENERGIES Performance
0 of 100
Over the last 90 days CROPENERGIES AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CROPENERGIES is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
SGL CARBON SE 
 SGL CARBON Performance
0 of 100
Over the last 90 days SGL CARBON SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SGL CARBON is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

CROPENERGIES and SGL CARBON Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with CROPENERGIES and SGL CARBON

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

CROPENERGIES AG

Pair trading matchups for CROPENERGIES

The idea behind CROPENERGIES AG and SGL CARBON SE 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.

SGL CARBON SE

Pair trading matchups for SGL CARBON

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

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