Correlation Between Bossard Holding and Aryzta AG
Can any of the company-specific risk be diversified away by investing in both Bossard Holding and Aryzta AG 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 Bossard Holding and Aryzta AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bossard Holding AG and Aryzta AG, you can compare the effects of market volatilities on Bossard Holding and Aryzta 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 Bossard Holding with a short position of Aryzta AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bossard Holding and Aryzta AG.
Diversification Opportunities for Bossard Holding and Aryzta AG
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bossard and Aryzta is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bossard Holding AG and Aryzta AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aryzta AG and Bossard 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 Bossard Holding AG are associated (or correlated) with Aryzta AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aryzta AG has no effect on the direction of Bossard Holding i.e., Bossard Holding and Aryzta AG go up and down completely randomly.
Pair Corralation between Bossard Holding and Aryzta AG
Assuming the 90 days trading horizon Bossard Holding AG is expected to under-perform the Aryzta AG. But the stock apears to be less risky and, when comparing its historical volatility, Bossard Holding AG is 1.09 times less risky than Aryzta AG. The stock trades about -0.01 of its potential returns per unit of risk. The Aryzta AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Aryzta AG on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Aryzta AG or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.62% |
| Values | Daily Returns |
Bossard Holding AG vs. Aryzta AG
Performance |
| Timeline |
| Bossard Holding AG |
| Aryzta AG |
Bossard Holding and Aryzta AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bossard Holding and Aryzta AG
The main advantage of trading using opposite Bossard Holding and Aryzta AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bossard Holding position performs unexpectedly, Aryzta 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 Aryzta AG will offset losses from the drop in Aryzta AG's long position.| Bossard Holding vs. VAT Group AG | Bossard Holding vs. Bucher Industries AG | Bossard Holding vs. EMS CHEMIE HOLDING AG | Bossard Holding vs. Komax Holding AG |
| Aryzta AG vs. Emmi AG | Aryzta AG vs. Feintool International Holding | Aryzta AG vs. Implenia AG | Aryzta AG vs. Bossard Holding AG |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |