Correlation Between Bossard Holding and Autoneum Holding
Can any of the company-specific risk be diversified away by investing in both Bossard Holding and Autoneum Holding 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 Autoneum Holding 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 Autoneum Holding AG, you can compare the effects of market volatilities on Bossard Holding and Autoneum Holding 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 Autoneum Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bossard Holding and Autoneum Holding.
Diversification Opportunities for Bossard Holding and Autoneum Holding
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bossard and Autoneum is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bossard Holding AG and Autoneum Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autoneum Holding 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 Autoneum Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autoneum Holding has no effect on the direction of Bossard Holding i.e., Bossard Holding and Autoneum Holding go up and down completely randomly.
Pair Corralation between Bossard Holding and Autoneum Holding
Assuming the 90 days trading horizon Bossard Holding AG is expected to under-perform the Autoneum Holding. But the stock apears to be less risky and, when comparing its historical volatility, Bossard Holding AG is 1.23 times less risky than Autoneum Holding. The stock trades about -0.01 of its potential returns per unit of risk. The Autoneum Holding AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 11,454 in Autoneum Holding AG on October 28, 2024 and sell it today you would earn a total of 1,566 from holding Autoneum Holding AG or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.34% |
| Values | Daily Returns |
Bossard Holding AG vs. Autoneum Holding AG
Performance |
| Timeline |
| Bossard Holding AG |
| Autoneum Holding |
Bossard Holding and Autoneum Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bossard Holding and Autoneum Holding
The main advantage of trading using opposite Bossard Holding and Autoneum Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bossard Holding position performs unexpectedly, Autoneum Holding 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 Autoneum Holding will offset losses from the drop in Autoneum Holding'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 |
| Autoneum Holding vs. Rieter Holding AG | Autoneum Holding vs. Comet Holding AG | Autoneum Holding vs. VAT Group AG | Autoneum Holding 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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