Correlation Between Burgenland Holding and AT S

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

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

Diversification Opportunities for Burgenland Holding and AT S

0.43

Correlation Coefficient

Burgenland Holding  AT S

Very weak diversification

The 3 months correlation between Burgenland and ATS is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Burgenland Holding Aktiengesel and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and Burgenland 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 Burgenland Holding Aktiengesellschaft are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of Burgenland Holding i.e., Burgenland Holding and AT S go up and down completely randomly.

Pair Corralation between Burgenland Holding and AT S

Assuming the 90 days trading horizon Burgenland Holding Aktiengesellschaft is expected to generate 0.33 times more return on investment than AT S. However, Burgenland Holding Aktiengesellschaft is 3.04 times less risky than AT S. It trades about -0.06 of its potential returns per unit of risk. AT S Austria is currently generating about -0.16 per unit of risk. If you would invest  7,500  in Burgenland Holding Aktiengesellschaft on September 5, 2024 and sell it today you would lose (300.00) from holding Burgenland Holding Aktiengesellschaft or give up 4.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Burgenland Holding Aktiengesel  vs.  AT S Austria

Burgenland Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Burgenland Holding Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Burgenland Holding is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

AT S Austria

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AT S Austria has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Burgenland Holding and AT S

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

The idea behind Burgenland Holding Aktiengesellschaft and AT S Austria 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.