Correlation Between Bilfinger and Aecom Technology
Can any of the company-specific risk be diversified away by investing in both Bilfinger and Aecom Technology 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 Bilfinger and Aecom Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilfinger SE ADR and Aecom Technology, you can compare the effects of market volatilities on Bilfinger and Aecom Technology 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 Bilfinger with a short position of Aecom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilfinger and Aecom Technology.
Diversification Opportunities for Bilfinger and Aecom Technology
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bilfinger and Aecom is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bilfinger SE ADR and Aecom Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aecom Technology and Bilfinger 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 Bilfinger SE ADR are associated (or correlated) with Aecom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aecom Technology has no effect on the direction of Bilfinger i.e., Bilfinger and Aecom Technology go up and down completely randomly.
Pair Corralation between Bilfinger and Aecom Technology
Assuming the 90 days horizon Bilfinger SE ADR is expected to under-perform the Aecom Technology. In addition to that, Bilfinger is 1.05 times more volatile than Aecom Technology. It trades about -0.06 of its total potential returns per unit of risk. Aecom Technology is currently generating about 0.18 per unit of volatility. If you would invest 9,966 in Aecom Technology on August 28, 2024 and sell it today you would earn a total of 1,708 from holding Aecom Technology or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Bilfinger SE ADR vs. Aecom Technology
Performance |
| Timeline |
| Bilfinger SE ADR |
| Aecom Technology |
Bilfinger and Aecom Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilfinger and Aecom Technology
The main advantage of trading using opposite Bilfinger and Aecom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilfinger position performs unexpectedly, Aecom Technology 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 Aecom Technology will offset losses from the drop in Aecom Technology's long position.| Bilfinger vs. Aecom Technology | Bilfinger vs. Matrix Service Co | Bilfinger vs. MYR Group | Bilfinger vs. Fluor |
| Aecom Technology vs. Innovate Corp | Aecom Technology vs. Energy Services | Aecom Technology vs. Topbuild Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |