Correlation Between Bertrandt and IShares Physical
Can any of the company-specific risk be diversified away by investing in both Bertrandt and IShares Physical 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 Bertrandt and IShares Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bertrandt AG and iShares Physical Platinum, you can compare the effects of market volatilities on Bertrandt and IShares Physical 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 Bertrandt with a short position of IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bertrandt and IShares Physical.
Diversification Opportunities for Bertrandt and IShares Physical
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bertrandt and IShares is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bertrandt AG and iShares Physical Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Platinum and Bertrandt 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 Bertrandt AG are associated (or correlated) with IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Platinum has no effect on the direction of Bertrandt i.e., Bertrandt and IShares Physical go up and down completely randomly.
Pair Corralation between Bertrandt and IShares Physical
Assuming the 90 days trading horizon Bertrandt AG is expected to generate 2.51 times more return on investment than IShares Physical. However, Bertrandt is 2.51 times more volatile than iShares Physical Platinum. It trades about 0.1 of its potential returns per unit of risk. iShares Physical Platinum is currently generating about -0.06 per unit of risk. If you would invest 1,765 in Bertrandt AG on September 12, 2024 and sell it today you would earn a total of 110.00 from holding Bertrandt AG or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bertrandt AG vs. iShares Physical Platinum
Performance |
| Timeline |
| Bertrandt AG |
| iShares Physical Platinum |
Bertrandt and IShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bertrandt and IShares Physical
The main advantage of trading using opposite Bertrandt and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bertrandt position performs unexpectedly, IShares Physical 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 IShares Physical will offset losses from the drop in IShares Physical's long position.| Bertrandt vs. Finnair Oyj | Bertrandt vs. Broadcom | Bertrandt vs. Norwegian Air Shuttle | Bertrandt vs. Sealed Air Corp |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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