Correlation Between Bell AG and Implenia
Can any of the company-specific risk be diversified away by investing in both Bell AG and Implenia 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 Bell AG and Implenia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell AG and Implenia AG, you can compare the effects of market volatilities on Bell AG and Implenia 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 Bell AG with a short position of Implenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell AG and Implenia.
Diversification Opportunities for Bell AG and Implenia
Good diversification
The 3 months correlation between Bell and Implenia is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bell AG and Implenia AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implenia AG and Bell AG 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 Bell AG are associated (or correlated) with Implenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implenia AG has no effect on the direction of Bell AG i.e., Bell AG and Implenia go up and down completely randomly.
Pair Corralation between Bell AG and Implenia
Assuming the 90 days trading horizon Bell AG is expected to generate 22.56 times less return on investment than Implenia. But when comparing it to its historical volatility, Bell AG is 1.74 times less risky than Implenia. It trades about 0.0 of its potential returns per unit of risk. Implenia AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,769 in Implenia AG on September 2, 2024 and sell it today you would earn a total of 151.00 from holding Implenia AG or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bell AG vs. Implenia AG
Performance |
| Timeline |
| Bell AG |
| Implenia AG |
Bell AG and Implenia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell AG and Implenia
The main advantage of trading using opposite Bell AG and Implenia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell AG position performs unexpectedly, Implenia 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 Implenia will offset losses from the drop in Implenia's long position.| Bell AG vs. Emmi AG | Bell AG vs. Feintool International Holding | Bell AG vs. Implenia AG | Bell AG vs. Bossard Holding AG |
| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Sulzer 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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