Correlation Between Burkhalter Holding and Implenia
Can any of the company-specific risk be diversified away by investing in both Burkhalter Holding and Implenia 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 Burkhalter Holding and Implenia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burkhalter Holding AG and Implenia AG, you can compare the effects of market volatilities on Burkhalter Holding and Implenia 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 Burkhalter Holding with a short position of Implenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burkhalter Holding and Implenia.
Diversification Opportunities for Burkhalter Holding and Implenia
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Burkhalter and Implenia is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Burkhalter Holding AG and Implenia AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implenia AG and Burkhalter 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 Burkhalter Holding AG are associated (or correlated) with Implenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implenia AG has no effect on the direction of Burkhalter Holding i.e., Burkhalter Holding and Implenia go up and down completely randomly.
Pair Corralation between Burkhalter Holding and Implenia
Assuming the 90 days trading horizon Burkhalter Holding AG is expected to generate 0.63 times more return on investment than Implenia. However, Burkhalter Holding AG is 1.6 times less risky than Implenia. It trades about 0.0 of its potential returns per unit of risk. Implenia AG is currently generating about -0.25 per unit of risk. If you would invest 9,030 in Burkhalter Holding AG on August 29, 2024 and sell it today you would lose (10.00) from holding Burkhalter Holding AG or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burkhalter Holding AG vs. Implenia AG
Performance |
| Timeline |
| Burkhalter Holding |
| Implenia AG |
Burkhalter Holding and Implenia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burkhalter Holding and Implenia
The main advantage of trading using opposite Burkhalter Holding and Implenia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burkhalter Holding position performs unexpectedly, Implenia 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 Implenia will offset losses from the drop in Implenia's long position.| Burkhalter Holding vs. mobilezone ag | Burkhalter Holding vs. Cembra Money Bank | Burkhalter Holding vs. OC Oerlikon Corp | Burkhalter Holding vs. Banque Cantonale |
| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Stadler Rail 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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