Correlation Between Bachem Holding and Also Holding
Can any of the company-specific risk be diversified away by investing in both Bachem Holding and Also 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 Bachem Holding and Also Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bachem Holding AG and Also Holding AG, you can compare the effects of market volatilities on Bachem Holding and Also 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 Bachem Holding with a short position of Also Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bachem Holding and Also Holding.
Diversification Opportunities for Bachem Holding and Also Holding
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bachem and Also is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bachem Holding AG and Also Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Also Holding AG and Bachem 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 Bachem Holding AG are associated (or correlated) with Also Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Also Holding AG has no effect on the direction of Bachem Holding i.e., Bachem Holding and Also Holding go up and down completely randomly.
Pair Corralation between Bachem Holding and Also Holding
Assuming the 90 days trading horizon Bachem Holding AG is expected to generate 1.96 times more return on investment than Also Holding. However, Bachem Holding is 1.96 times more volatile than Also Holding AG. It trades about -0.09 of its potential returns per unit of risk. Also Holding AG is currently generating about -0.2 per unit of risk. If you would invest 7,135 in Bachem Holding AG on August 29, 2024 and sell it today you would lose (395.00) from holding Bachem Holding AG or give up 5.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bachem Holding AG vs. Also Holding AG
Performance |
| Timeline |
| Bachem Holding AG |
| Also Holding AG |
Bachem Holding and Also Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bachem Holding and Also Holding
The main advantage of trading using opposite Bachem Holding and Also Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bachem Holding position performs unexpectedly, Also 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 Also Holding will offset losses from the drop in Also Holding's long position.| Bachem Holding vs. Santhera Pharmaceuticals Holding | Bachem Holding vs. Newron Pharmaceuticals SpA | Bachem Holding vs. Basilea Pharmaceutica AG | Bachem Holding vs. Evolva Holding SA |
| Also Holding vs. Hubersuhner AG | Also Holding vs. Implenia AG | Also Holding vs. Mikron Holding AG | Also Holding vs. Bucher Industries 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |