Correlation Between Aluflexpack and Vifor Pharma

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

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

Diversification Opportunities for Aluflexpack and Vifor Pharma

0.0

Correlation Coefficient

Aluflexpack  Vifor Pharma

Pay attention - limited upside

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

Pair Corralation between Aluflexpack and Vifor Pharma

If you would invest  1,445  in Aluflexpack AG on October 23, 2024 and sell it today you would earn a total of  70.00  from holding Aluflexpack AG or generate 4.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aluflexpack AG  vs.  Vifor Pharma AG

Aluflexpack AG

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aluflexpack AG are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Aluflexpack is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Vifor Pharma AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vifor Pharma AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Vifor Pharma is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Aluflexpack and Vifor Pharma

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

The idea behind Aluflexpack AG and Vifor Pharma AG 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.