Correlation Between Bilfinger and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both Bilfinger and Concrete Pumping 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 Concrete Pumping 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 Concrete Pumping Holdings, you can compare the effects of market volatilities on Bilfinger and Concrete Pumping 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 Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilfinger and Concrete Pumping.
Diversification Opportunities for Bilfinger and Concrete Pumping
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bilfinger and Concrete is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bilfinger SE ADR and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings 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 Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Bilfinger i.e., Bilfinger and Concrete Pumping go up and down completely randomly.
Pair Corralation between Bilfinger and Concrete Pumping
If you would invest 2.90 in Concrete Pumping Holdings on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Concrete Pumping Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bilfinger SE ADR vs. Concrete Pumping Holdings
Performance |
| Timeline |
| Bilfinger SE ADR |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bilfinger and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilfinger and Concrete Pumping
The main advantage of trading using opposite Bilfinger and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilfinger position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.| Bilfinger vs. Aecom Technology | Bilfinger vs. Matrix Service Co | Bilfinger vs. MYR Group | Bilfinger vs. Fluor |
| Concrete Pumping vs. Peoples Educational Holdings | Concrete Pumping vs. Ihuman Inc | Concrete Pumping vs. East Africa Metals | Concrete Pumping vs. Lion One Metals |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |