Correlation Between AdCapital and Bilfinger
Can any of the company-specific risk be diversified away by investing in both AdCapital and Bilfinger 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 AdCapital and Bilfinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdCapital AG and Bilfinger SE, you can compare the effects of market volatilities on AdCapital and Bilfinger 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 AdCapital with a short position of Bilfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdCapital and Bilfinger.
Diversification Opportunities for AdCapital and Bilfinger
Poor diversification
The 3 months correlation between AdCapital and Bilfinger is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding AdCapital AG and Bilfinger SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilfinger SE and AdCapital 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 AdCapital AG are associated (or correlated) with Bilfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilfinger SE has no effect on the direction of AdCapital i.e., AdCapital and Bilfinger go up and down completely randomly.
Pair Corralation between AdCapital and Bilfinger
Assuming the 90 days horizon AdCapital AG is expected to under-perform the Bilfinger. In addition to that, AdCapital is 1.1 times more volatile than Bilfinger SE. It trades about -0.09 of its total potential returns per unit of risk. Bilfinger SE is currently generating about -0.04 per unit of volatility. If you would invest 5,020 in Bilfinger SE on September 13, 2024 and sell it today you would lose (255.00) from holding Bilfinger SE or give up 5.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
AdCapital AG vs. Bilfinger SE
Performance |
| Timeline |
| AdCapital AG |
| Bilfinger SE |
AdCapital and Bilfinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdCapital and Bilfinger
The main advantage of trading using opposite AdCapital and Bilfinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdCapital position performs unexpectedly, Bilfinger 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 Bilfinger will offset losses from the drop in Bilfinger's long position.| AdCapital vs. Hyatt Hotels | AdCapital vs. Summit Hotel Properties | AdCapital vs. Xenia Hotels Resorts | AdCapital vs. QINGCI GAMES INC |
| Bilfinger vs. Sumitomo Rubber Industries | Bilfinger vs. Summit Materials | Bilfinger vs. Eagle Materials | Bilfinger vs. Mitsubishi Materials |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |