Correlation Between Bachem Holding and U Blox
Can any of the company-specific risk be diversified away by investing in both Bachem Holding and U Blox 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 U Blox 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 U Blox Holding, you can compare the effects of market volatilities on Bachem Holding and U Blox 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 U Blox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bachem Holding and U Blox.
Diversification Opportunities for Bachem Holding and U Blox
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bachem and UBXN is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bachem Holding AG and U Blox Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Blox Holding 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 U Blox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Blox Holding has no effect on the direction of Bachem Holding i.e., Bachem Holding and U Blox go up and down completely randomly.
Pair Corralation between Bachem Holding and U Blox
Assuming the 90 days trading horizon Bachem Holding AG is expected to generate 1.06 times more return on investment than U Blox. However, Bachem Holding is 1.06 times more volatile than U Blox Holding. It trades about 0.02 of its potential returns per unit of risk. U Blox Holding is currently generating about -0.04 per unit of risk. If you would invest 6,413 in Bachem Holding AG on September 2, 2024 and sell it today you would earn a total of 397.00 from holding Bachem Holding AG or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bachem Holding AG vs. U Blox Holding
Performance |
| Timeline |
| Bachem Holding AG |
| U Blox Holding |
Bachem Holding and U Blox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bachem Holding and U Blox
The main advantage of trading using opposite Bachem Holding and U Blox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bachem Holding position performs unexpectedly, U Blox 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 U Blox will offset losses from the drop in U Blox'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 |
| U Blox vs. Jungfraubahn Holding AG | U Blox vs. Amsterdam Commodities NV | U Blox vs. Flow Traders BV | U Blox vs. ForFarmers NV |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |