Correlation Between Schweiter Technologies and Strainsforpains

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Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies and Strainsforpains 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 Schweiter Technologies and Strainsforpains into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweiter Technologies AG and Strainsforpains, you can compare the effects of market volatilities on Schweiter Technologies and Strainsforpains 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 Schweiter Technologies with a short position of Strainsforpains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and Strainsforpains.

Diversification Opportunities for Schweiter Technologies and Strainsforpains

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Schweiter Technologies and Strainsforpains

If you would invest  16.00  in Strainsforpains on September 5, 2025 and sell it today you would earn a total of  1.00  from holding Strainsforpains or generate 6.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Schweiter Technologies AG  vs.  Strainsforpains

 Performance 
       Timeline  
Schweiter Technologies 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Schweiter Technologies AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Schweiter Technologies is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
Strainsforpains 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Strainsforpains are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Strainsforpains is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Schweiter Technologies and Strainsforpains Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Schweiter Technologies and Strainsforpains

The main advantage of trading using opposite Schweiter Technologies and Strainsforpains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweiter Technologies position performs unexpectedly, Strainsforpains 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 Strainsforpains will offset losses from the drop in Strainsforpains' long position.
The idea behind Schweiter Technologies AG and Strainsforpains 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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