Correlation Between Zug Estates and Adval Tech

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

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

Diversification Opportunities for Zug Estates and Adval Tech

0.29

Correlation Coefficient

Zug Estates  Adval Tech

Modest diversification

The 3 months correlation between Zug and Adval is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zug Estates Holding and Adval Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adval Tech Holding and Zug Estates 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 Zug Estates Holding are associated (or correlated) with Adval Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adval Tech Holding has no effect on the direction of Zug Estates i.e., Zug Estates and Adval Tech go up and down completely randomly.

Pair Corralation between Zug Estates and Adval Tech

Assuming the 90 days trading horizon Zug Estates Holding is expected to under-perform the Adval Tech. But the stock apears to be less risky and, when comparing its historical volatility, Zug Estates Holding is 6.44 times less risky than Adval Tech. The stock trades about -0.03 of its potential returns per unit of risk. The Adval Tech Holding is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,060  in Adval Tech Holding on July 30, 2025 and sell it today you would earn a total of  380.00  from holding Adval Tech Holding or generate 9.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	71.43%
Values	Daily Returns

Zug Estates Holding  vs.  Adval Tech Holding

Zug Estates Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Zug Estates Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Zug Estates is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Adval Tech Holding

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Adval Tech Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Adval Tech showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zug Estates and Adval Tech

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

The idea behind Zug Estates Holding and Adval Tech 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.