Correlation Between Burckhardt Compression and Comet Holding
Can any of the company-specific risk be diversified away by investing in both Burckhardt Compression and Comet 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 Burckhardt Compression and Comet Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burckhardt Compression and Comet Holding AG, you can compare the effects of market volatilities on Burckhardt Compression and Comet 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 Burckhardt Compression with a short position of Comet Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burckhardt Compression and Comet Holding.
Diversification Opportunities for Burckhardt Compression and Comet Holding
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Burckhardt and Comet is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Burckhardt Compression and Comet Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comet Holding AG and Burckhardt Compression 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 Burckhardt Compression are associated (or correlated) with Comet Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comet Holding AG has no effect on the direction of Burckhardt Compression i.e., Burckhardt Compression and Comet Holding go up and down completely randomly.
Pair Corralation between Burckhardt Compression and Comet Holding
Assuming the 90 days trading horizon Burckhardt Compression is expected to generate 0.93 times more return on investment than Comet Holding. However, Burckhardt Compression is 1.08 times less risky than Comet Holding. It trades about 0.11 of its potential returns per unit of risk. Comet Holding AG is currently generating about -0.06 per unit of risk. If you would invest 63,500 in Burckhardt Compression on September 1, 2024 and sell it today you would earn a total of 2,500 from holding Burckhardt Compression or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Burckhardt Compression vs. Comet Holding AG
Performance |
| Timeline |
| Burckhardt Compression |
| Comet Holding AG |
Burckhardt Compression and Comet Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burckhardt Compression and Comet Holding
The main advantage of trading using opposite Burckhardt Compression and Comet Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burckhardt Compression position performs unexpectedly, Comet 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 Comet Holding will offset losses from the drop in Comet Holding's long position.| Burckhardt Compression vs. OC Oerlikon Corp | Burckhardt Compression vs. Helvetia Holding AG | Burckhardt Compression vs. Swiss Life Holding | Burckhardt Compression vs. VAT Group AG |
| Comet Holding vs. VAT Group AG | Comet Holding vs. Bachem Holding AG | Comet Holding vs. U Blox Holding | Comet Holding vs. Belimo Holding |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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