Correlation Between Birkenstock Holding and Roth CH

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

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

Diversification Opportunities for Birkenstock Holding and Roth CH

0.0

Correlation Coefficient

Birkenstock Holding  Roth CH

Pay attention - limited upside

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

Pair Corralation between Birkenstock Holding and Roth CH

If you would invest  4,685  in Birkenstock Holding plc on December 8, 2024 and sell it today you would lose (120.00) from holding Birkenstock Holding plc or give up 2.56% of portfolio value over 90 days.

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

Birkenstock Holding plc  vs.  Roth CH Acquisition

Birkenstock Holding plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Birkenstock Holding plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Roth CH Acquisition

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Birkenstock Holding and Roth CH

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

The idea behind Birkenstock Holding plc and Roth CH Acquisition 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.