Correlation Between Burckhardt Compression and OC Oerlikon
Can any of the company-specific risk be diversified away by investing in both Burckhardt Compression and OC Oerlikon 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 OC Oerlikon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burckhardt Compression and OC Oerlikon Corp, you can compare the effects of market volatilities on Burckhardt Compression and OC Oerlikon 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 OC Oerlikon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burckhardt Compression and OC Oerlikon.
Diversification Opportunities for Burckhardt Compression and OC Oerlikon
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Burckhardt and OERL is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Burckhardt Compression and OC Oerlikon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OC Oerlikon Corp 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 OC Oerlikon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OC Oerlikon Corp has no effect on the direction of Burckhardt Compression i.e., Burckhardt Compression and OC Oerlikon go up and down completely randomly.
Pair Corralation between Burckhardt Compression and OC Oerlikon
Assuming the 90 days trading horizon Burckhardt Compression is expected to generate 0.72 times more return on investment than OC Oerlikon. However, Burckhardt Compression is 1.39 times less risky than OC Oerlikon. It trades about 0.13 of its potential returns per unit of risk. OC Oerlikon Corp is currently generating about 0.02 per unit of risk. If you would invest 44,677 in Burckhardt Compression on November 5, 2024 and sell it today you would earn a total of 24,523 from holding Burckhardt Compression or generate 54.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burckhardt Compression vs. OC Oerlikon Corp
Performance |
| Timeline |
| Burckhardt Compression |
| OC Oerlikon Corp |
Burckhardt Compression and OC Oerlikon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burckhardt Compression and OC Oerlikon
The main advantage of trading using opposite Burckhardt Compression and OC Oerlikon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burckhardt Compression position performs unexpectedly, OC Oerlikon 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 OC Oerlikon will offset losses from the drop in OC Oerlikon's long position.| Burckhardt Compression vs. Bucher Industries AG | Burckhardt Compression vs. Sulzer AG | Burckhardt Compression vs. Comet Holding AG | Burckhardt Compression vs. Belimo Holding |
| OC Oerlikon vs. Sulzer AG | OC Oerlikon vs. Helvetia Holding AG | OC Oerlikon vs. Swiss Life Holding | OC Oerlikon vs. Adecco Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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