Correlation Between Concrete Pumping and Bilfinger

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

By analyzing existing cross correlation between Concrete Pumping Holdings and Bilfinger SE ADR, you can compare the effects of market volatilities on Concrete Pumping and Bilfinger 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 Concrete Pumping with a short position of Bilfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concrete Pumping and Bilfinger.

Diversification Opportunities for Concrete Pumping and Bilfinger

0.0

Correlation Coefficient

Concrete Pumping  Bilfinger

Pay attention - limited upside

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

Pair Corralation between Concrete Pumping and Bilfinger

If you would invest  942.00  in Bilfinger SE ADR on December 31, 2024 and sell it today you would earn a total of  473.00  from holding Bilfinger SE ADR or generate 50.21% return on investment over 90 days.

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

Concrete Pumping Holdings  vs.  Bilfinger SE ADR

Concrete Pumping Holdings

Risk-Adjusted Performance

Very Weak

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

Bilfinger SE ADR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bilfinger SE ADR are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental drivers, Bilfinger showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Concrete Pumping and Bilfinger

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

The idea behind Concrete Pumping Holdings and Bilfinger SE ADR 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.