Correlation Between Bossard Holding and OC Oerlikon
Can any of the company-specific risk be diversified away by investing in both Bossard Holding and OC Oerlikon 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 Bossard Holding and OC Oerlikon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bossard Holding AG and OC Oerlikon Corp, you can compare the effects of market volatilities on Bossard Holding and OC Oerlikon 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 Bossard Holding with a short position of OC Oerlikon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bossard Holding and OC Oerlikon.
Diversification Opportunities for Bossard Holding and OC Oerlikon
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bossard and OERL is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bossard Holding AG and OC Oerlikon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OC Oerlikon Corp and Bossard 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 Bossard Holding AG are associated (or correlated) with OC Oerlikon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OC Oerlikon Corp has no effect on the direction of Bossard Holding i.e., Bossard Holding and OC Oerlikon go up and down completely randomly.
Pair Corralation between Bossard Holding and OC Oerlikon
Assuming the 90 days trading horizon Bossard Holding AG is expected to generate 0.83 times more return on investment than OC Oerlikon. However, Bossard Holding AG is 1.2 times less risky than OC Oerlikon. It trades about 0.0 of its potential returns per unit of risk. OC Oerlikon Corp is currently generating about -0.04 per unit of risk. If you would invest 20,853 in Bossard Holding AG on September 30, 2024 and sell it today you would lose (1,593) from holding Bossard Holding AG or give up 7.64% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.37% |
Values | Daily Returns |
Bossard Holding AG vs. OC Oerlikon Corp
Performance |
Timeline |
Bossard Holding AG |
OC Oerlikon Corp |
Bossard Holding and OC Oerlikon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bossard Holding and OC Oerlikon
The main advantage of trading using opposite Bossard Holding and OC Oerlikon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bossard Holding position performs unexpectedly, OC Oerlikon 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 OC Oerlikon will offset losses from the drop in OC Oerlikon's long position.Bossard Holding vs. VAT Group AG | Bossard Holding vs. Bucher Industries AG | Bossard Holding vs. EMS CHEMIE HOLDING AG | Bossard Holding vs. Komax Holding AG |
OC Oerlikon vs. Comet Holding AG | OC Oerlikon vs. Bossard Holding AG | OC Oerlikon vs. VAT Group AG | OC Oerlikon vs. Bucher Industries AG |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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