Correlation Between Comet Holding and Belimo Holding

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

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

Diversification Opportunities for Comet Holding and Belimo Holding

0.17

Correlation Coefficient

Comet Holding  Belimo Holding

Average diversification

The 3 months correlation between Comet and Belimo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Comet Holding AG and Belimo Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belimo Holding and Comet Holding 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 Comet Holding AG are associated (or correlated) with Belimo Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belimo Holding has no effect on the direction of Comet Holding i.e., Comet Holding and Belimo Holding go up and down completely randomly.

Pair Corralation between Comet Holding and Belimo Holding

Assuming the 90 days trading horizon Comet Holding AG is expected to under-perform the Belimo Holding. In addition to that, Comet Holding is 2.27 times more volatile than Belimo Holding. It trades about -0.1 of its total potential returns per unit of risk. Belimo Holding is currently generating about -0.07 per unit of volatility. If you would invest  93,400  in Belimo Holding on July 30, 2025 and sell it today you would lose (7,800) from holding Belimo Holding or give up 8.35% of portfolio value over 90 days.

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

Comet Holding AG  vs.  Belimo Holding

Comet Holding AG

Risk-Adjusted Performance

Weakest

Over the last 90 days Comet Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in November 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Belimo Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Belimo Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Comet Holding and Belimo Holding

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

The idea behind Comet Holding AG and Belimo Holding 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.