Correlation Between Also Holding and BVZ Holding
Can any of the company-specific risk be diversified away by investing in both Also Holding and BVZ 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 Also Holding and BVZ Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Also Holding AG and BVZ Holding AG, you can compare the effects of market volatilities on Also Holding and BVZ 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 Also Holding with a short position of BVZ Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Also Holding and BVZ Holding.
Diversification Opportunities for Also Holding and BVZ Holding
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Also and BVZ is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Also Holding AG and BVZ Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BVZ Holding AG and Also Holding 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 Also Holding AG are associated (or correlated) with BVZ Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BVZ Holding AG has no effect on the direction of Also Holding i.e., Also Holding and BVZ Holding go up and down completely randomly.
Pair Corralation between Also Holding and BVZ Holding
Assuming the 90 days trading horizon Also Holding AG is expected to generate 1.23 times more return on investment than BVZ Holding. However, Also Holding is 1.23 times more volatile than BVZ Holding AG. It trades about 0.0 of its potential returns per unit of risk. BVZ Holding AG is currently generating about 0.0 per unit of risk. If you would invest 24,115 in Also Holding AG on September 3, 2024 and sell it today you would lose (615.00) from holding Also Holding AG or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.5% |
| Values | Daily Returns |
Also Holding AG vs. BVZ Holding AG
Performance |
| Timeline |
| Also Holding AG |
| BVZ Holding AG |
Also Holding and BVZ Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Also Holding and BVZ Holding
The main advantage of trading using opposite Also Holding and BVZ Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Also Holding position performs unexpectedly, BVZ 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 BVZ Holding will offset losses from the drop in BVZ Holding's long position.| Also Holding vs. Bachem Holding AG | Also Holding vs. Comet Holding AG | Also Holding vs. Interroll Holding AG | Also Holding vs. Siegfried Holding |
| BVZ Holding vs. Jungfraubahn Holding AG | BVZ Holding vs. Daetwyl I | BVZ Holding vs. Also Holding AG | BVZ Holding vs. Emmi 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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