Correlation Between Bollor SE and CH Robinson
Can any of the company-specific risk be diversified away by investing in both Bollor SE and CH Robinson 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 Bollor SE and CH Robinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bollor SE and CH Robinson Worldwide, you can compare the effects of market volatilities on Bollor SE and CH Robinson 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 Bollor SE with a short position of CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bollor SE and CH Robinson.
Diversification Opportunities for Bollor SE and CH Robinson
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bollor and CH1A is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bollor SE and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide and Bollor SE 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 Bollor SE are associated (or correlated) with CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of Bollor SE i.e., Bollor SE and CH Robinson go up and down completely randomly.
Pair Corralation between Bollor SE and CH Robinson
Assuming the 90 days horizon Bollor SE is expected to generate 1.65 times less return on investment than CH Robinson. But when comparing it to its historical volatility, Bollor SE is 1.64 times less risky than CH Robinson. It trades about 0.02 of its potential returns per unit of risk. CH Robinson Worldwide is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,590 in CH Robinson Worldwide on September 4, 2024 and sell it today you would earn a total of 1,360 from holding CH Robinson Worldwide or generate 15.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bollor SE vs. CH Robinson Worldwide
Performance |
| Timeline |
| Bollor SE |
| CH Robinson Worldwide |
Bollor SE and CH Robinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bollor SE and CH Robinson
The main advantage of trading using opposite Bollor SE and CH Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bollor SE position performs unexpectedly, CH Robinson 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 CH Robinson will offset losses from the drop in CH Robinson's long position.| Bollor SE vs. Gruppo Mutuionline SpA | Bollor SE vs. Food Life Companies | Bollor SE vs. YATRA ONLINE DL 0001 | Bollor SE vs. CN MODERN DAIRY |
| CH Robinson vs. PENN NATL GAMING | CH Robinson vs. Fast Retailing Co | CH Robinson vs. PICKN PAY STORES | CH Robinson vs. GigaMedia |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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