Correlation Between Birkenstock Holding and IShares Global

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Can any of the company-specific risk be diversified away by investing in both Birkenstock Holding and IShares Global 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 Birkenstock Holding and IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birkenstock Holding plc and iShares Global Real, you can compare the effects of market volatilities on Birkenstock Holding and IShares Global 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 Birkenstock Holding with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birkenstock Holding and IShares Global.

Diversification Opportunities for Birkenstock Holding and IShares Global

BirkenstockISharesDiversified AwayBirkenstockISharesDiversified Away100%
-0.61
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Birkenstock and IShares is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Birkenstock Holding plc and iShares Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Real and Birkenstock Holding 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 Birkenstock Holding plc are associated (or correlated) with IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Real has no effect on the direction of Birkenstock Holding i.e., Birkenstock Holding and IShares Global go up and down completely randomly.

Pair Corralation between Birkenstock Holding and IShares Global

Given the investment horizon of 90 days Birkenstock Holding plc is expected to under-perform the IShares Global. In addition to that, Birkenstock Holding is 2.28 times more volatile than iShares Global Real. It trades about -0.06 of its total potential returns per unit of risk. iShares Global Real is currently generating about 0.01 per unit of volatility. If you would invest  3,186  in iShares Global Real on December 3, 2024 and sell it today you would earn a total of  6.00  from holding iShares Global Real or generate 0.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Birkenstock Holding plc  vs.  iShares Global Real

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-5051015
JavaScript chart by amCharts 3.21.15BIRK CGR
       Timeline  
Birkenstock Holding plc 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Birkenstock Holding plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar4850525456586062
iShares Global Real 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days iShares Global Real has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, IShares Global is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar29.53030.53131.532

Birkenstock Holding and IShares Global Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.44-2.58-1.71-0.850.010.811.622.443.25 0.10.20.30.4
JavaScript chart by amCharts 3.21.15BIRK CGR
       Returns  

Pair Trading with Birkenstock Holding and IShares Global

The main advantage of trading using opposite Birkenstock Holding and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birkenstock Holding position performs unexpectedly, IShares Global 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 IShares Global will offset losses from the drop in IShares Global's long position.
The idea behind Birkenstock Holding plc and iShares Global Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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