Correlation Between Bilfinger and Acciona SA
Can any of the company-specific risk be diversified away by investing in both Bilfinger and Acciona SA 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 Acciona SA 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 Acciona SA, you can compare the effects of market volatilities on Bilfinger and Acciona SA 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 Acciona SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilfinger and Acciona SA.
Diversification Opportunities for Bilfinger and Acciona SA
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bilfinger and Acciona is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bilfinger SE ADR and Acciona SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acciona SA 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 Acciona SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acciona SA has no effect on the direction of Bilfinger i.e., Bilfinger and Acciona SA go up and down completely randomly.
Pair Corralation between Bilfinger and Acciona SA
Assuming the 90 days horizon Bilfinger SE ADR is expected to under-perform the Acciona SA. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bilfinger SE ADR is 1.58 times less risky than Acciona SA. The pink sheet trades about -0.31 of its potential returns per unit of risk. The Acciona SA is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 13,138 in Acciona SA on August 29, 2024 and sell it today you would lose (708.00) from holding Acciona SA or give up 5.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilfinger SE ADR vs. Acciona SA
Performance |
| Timeline |
| Bilfinger SE ADR |
| Acciona SA |
Bilfinger and Acciona SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilfinger and Acciona SA
The main advantage of trading using opposite Bilfinger and Acciona SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilfinger position performs unexpectedly, Acciona SA 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 Acciona SA will offset losses from the drop in Acciona SA's long position.| Bilfinger vs. Aecom Technology | Bilfinger vs. Matrix Service Co | Bilfinger vs. MYR Group | Bilfinger vs. Fluor |
| Acciona SA vs. Aecom Technology | Acciona SA vs. Matrix Service Co | Acciona SA vs. MYR Group | Acciona SA vs. Fluor |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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