Correlation Between Carl Zeiss and HOYA
Can any of the company-specific risk be diversified away by investing in both Carl Zeiss and HOYA 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 Carl Zeiss and HOYA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carl Zeiss Meditec and HOYA Corporation, you can compare the effects of market volatilities on Carl Zeiss and HOYA 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 Carl Zeiss with a short position of HOYA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carl Zeiss and HOYA.
Diversification Opportunities for Carl Zeiss and HOYA
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carl and HOYA is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Carl Zeiss Meditec and HOYA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA and Carl Zeiss 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 Carl Zeiss Meditec are associated (or correlated) with HOYA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA has no effect on the direction of Carl Zeiss i.e., Carl Zeiss and HOYA go up and down completely randomly.
Pair Corralation between Carl Zeiss and HOYA
Assuming the 90 days horizon Carl Zeiss Meditec is expected to generate 0.86 times more return on investment than HOYA. However, Carl Zeiss Meditec is 1.17 times less risky than HOYA. It trades about 0.0 of its potential returns per unit of risk. HOYA Corporation is currently generating about -0.19 per unit of risk. If you would invest 4,865 in Carl Zeiss Meditec on June 10, 2025 and sell it today you would lose (6.00) from holding Carl Zeiss Meditec or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carl Zeiss Meditec vs. HOYA Corp.
Performance |
| Timeline |
| Carl Zeiss Meditec |
| HOYA |
Carl Zeiss and HOYA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carl Zeiss and HOYA
The main advantage of trading using opposite Carl Zeiss and HOYA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carl Zeiss position performs unexpectedly, HOYA 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 HOYA will offset losses from the drop in HOYA's long position.| Carl Zeiss vs. Becton Dickinson and | Carl Zeiss vs. Coloplast AS | Carl Zeiss vs. Carl Zeiss Meditec | Carl Zeiss vs. Essilor International SA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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