Correlation Between Aevis Victoria and Bachem Holding
Can any of the company-specific risk be diversified away by investing in both Aevis Victoria and Bachem Holding 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 Aevis Victoria and Bachem Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aevis Victoria SA and Bachem Holding AG, you can compare the effects of market volatilities on Aevis Victoria and Bachem Holding 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 Aevis Victoria with a short position of Bachem Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aevis Victoria and Bachem Holding.
Diversification Opportunities for Aevis Victoria and Bachem Holding
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aevis and Bachem is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aevis Victoria SA and Bachem Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bachem Holding AG and Aevis Victoria 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 Aevis Victoria SA are associated (or correlated) with Bachem Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bachem Holding AG has no effect on the direction of Aevis Victoria i.e., Aevis Victoria and Bachem Holding go up and down completely randomly.
Pair Corralation between Aevis Victoria and Bachem Holding
Assuming the 90 days trading horizon Aevis Victoria SA is expected to generate 1.75 times more return on investment than Bachem Holding. However, Aevis Victoria is 1.75 times more volatile than Bachem Holding AG. It trades about 0.0 of its potential returns per unit of risk. Bachem Holding AG is currently generating about 0.0 per unit of risk. If you would invest 1,410 in Aevis Victoria SA on November 2, 2024 and sell it today you would lose (10.00) from holding Aevis Victoria SA or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aevis Victoria SA vs. Bachem Holding AG
Performance |
| Timeline |
| Aevis Victoria SA |
| Bachem Holding AG |
Aevis Victoria and Bachem Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aevis Victoria and Bachem Holding
The main advantage of trading using opposite Aevis Victoria and Bachem Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aevis Victoria position performs unexpectedly, Bachem Holding 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 Bachem Holding will offset losses from the drop in Bachem Holding's long position.| Aevis Victoria vs. Bachem Holding AG | Aevis Victoria vs. COSMO Pharmaceuticals SA | Aevis Victoria vs. Ypsomed Holding AG | Aevis Victoria vs. Siegfried Holding |
| Bachem Holding vs. Siegfried Holding | Bachem Holding vs. VAT Group AG | Bachem Holding vs. Lonza Group AG | Bachem Holding vs. Straumann Holding 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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