Correlation Between Corsair Gaming and Buhler Industries

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

By analyzing existing cross correlation between Corsair Gaming and Buhler Industries, you can compare the effects of market volatilities on Corsair Gaming and Buhler Industries 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 Corsair Gaming with a short position of Buhler Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Buhler Industries.

Diversification Opportunities for Corsair Gaming and Buhler Industries

0.0

Correlation Coefficient

Corsair Gaming  Buhler Industries

Pay attention - limited upside

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

Pair Corralation between Corsair Gaming and Buhler Industries

If you would invest  188.00  in Buhler Industries on September 20, 2024 and sell it today you would earn a total of  0.00  from holding Buhler Industries or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Corsair Gaming  vs.  Buhler Industries

Corsair Gaming

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Corsair Gaming are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Corsair Gaming may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Buhler Industries

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Corsair Gaming and Buhler Industries

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

The idea behind Corsair Gaming and Buhler Industries 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 CEOs Directory module to screen CEOs from public companies around the world.