Correlation Between Brockhaus Capital and Baywa AG
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By analyzing existing cross correlation between Brockhaus Capital Management and Baywa AG Vink, you can compare the effects of market volatilities on Brockhaus Capital and Baywa AG 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 Brockhaus Capital with a short position of Baywa AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and Baywa AG.
Diversification Opportunities for Brockhaus Capital and Baywa AG
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brockhaus and Baywa is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and Baywa AG Vink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baywa AG Vink and Brockhaus Capital 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 Brockhaus Capital Management are associated (or correlated) with Baywa AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baywa AG Vink has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and Baywa AG go up and down completely randomly.
Pair Corralation between Brockhaus Capital and Baywa AG
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the Baywa AG. But the stock apears to be less risky and, when comparing its historical volatility, Brockhaus Capital Management is 1.65 times less risky than Baywa AG. The stock trades about -0.23 of its potential returns per unit of risk. The Baywa AG Vink is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,180 in Baywa AG Vink on September 13, 2024 and sell it today you would lose (200.00) from holding Baywa AG Vink or give up 16.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Brockhaus Capital Management vs. Baywa AG Vink
Performance |
| Timeline |
| Brockhaus Capital |
| Baywa AG Vink |
Brockhaus Capital and Baywa AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and Baywa AG
The main advantage of trading using opposite Brockhaus Capital and Baywa AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital position performs unexpectedly, Baywa AG 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 Baywa AG will offset losses from the drop in Baywa AG's long position.| Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. SIVERS SEMICONDUCTORS AB |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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