Correlation Between Bridgemarq Real and Adler Group

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

By analyzing existing cross correlation between Bridgemarq Real Estate and Adler Group SA, you can compare the effects of market volatilities on Bridgemarq Real and Adler Group 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 Bridgemarq Real with a short position of Adler Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgemarq Real and Adler Group.

Diversification Opportunities for Bridgemarq Real and Adler Group

-0.48

Correlation Coefficient

Bridgemarq Real  Adler Group

Very good diversification

The 3 months correlation between Bridgemarq and Adler is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bridgemarq Real Estate and Adler Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adler Group SA and Bridgemarq Real 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 Bridgemarq Real Estate are associated (or correlated) with Adler Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adler Group SA has no effect on the direction of Bridgemarq Real i.e., Bridgemarq Real and Adler Group go up and down completely randomly.

Pair Corralation between Bridgemarq Real and Adler Group

If you would invest  35.00  in Adler Group SA on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Adler Group SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	47.27%
Values	Daily Returns

Bridgemarq Real Estate  vs.  Adler Group SA

Bridgemarq Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bridgemarq Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bridgemarq Real is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Adler Group SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adler Group SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Adler Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bridgemarq Real and Adler Group

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

The idea behind Bridgemarq Real Estate and Adler Group SA 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.