Correlation Between Bachem Holding and Nebag Ag
Can any of the company-specific risk be diversified away by investing in both Bachem Holding and Nebag Ag 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 Nebag Ag 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 Nebag ag, you can compare the effects of market volatilities on Bachem Holding and Nebag Ag 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 Nebag Ag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bachem Holding and Nebag Ag.
Diversification Opportunities for Bachem Holding and Nebag Ag
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bachem and Nebag is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bachem Holding AG and Nebag ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebag 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 Nebag Ag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebag ag has no effect on the direction of Bachem Holding i.e., Bachem Holding and Nebag Ag go up and down completely randomly.
Pair Corralation between Bachem Holding and Nebag Ag
Assuming the 90 days trading horizon Bachem Holding AG is expected to under-perform the Nebag Ag. In addition to that, Bachem Holding is 1.75 times more volatile than Nebag ag. It trades about -0.02 of its total potential returns per unit of risk. Nebag ag is currently generating about -0.04 per unit of volatility. If you would invest 819.00 in Nebag ag on December 1, 2024 and sell it today you would lose (144.00) from holding Nebag ag or give up 17.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.06% |
| Values | Daily Returns |
Bachem Holding AG vs. Nebag ag
Performance |
| Timeline |
| Bachem Holding AG |
| Nebag ag |
Bachem Holding and Nebag Ag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bachem Holding and Nebag Ag
The main advantage of trading using opposite Bachem Holding and Nebag Ag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bachem Holding position performs unexpectedly, Nebag Ag 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 Nebag Ag will offset losses from the drop in Nebag Ag's long position.| Bachem Holding vs. Siegfried Holding | Bachem Holding vs. VAT Group AG | Bachem Holding vs. Lonza Group AG | Bachem Holding vs. Straumann Holding AG |
| Nebag Ag vs. Bachem Holding AG | Nebag Ag vs. Kudelski | Nebag Ag vs. Alpine Select AG | Nebag Ag vs. BB Biotech 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |