Correlation Between Bucher Industries and Burckhardt Compression
Can any of the company-specific risk be diversified away by investing in both Bucher Industries and Burckhardt Compression 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 Bucher Industries and Burckhardt Compression into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bucher Industries AG and Burckhardt Compression, you can compare the effects of market volatilities on Bucher Industries and Burckhardt Compression 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 Bucher Industries with a short position of Burckhardt Compression. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bucher Industries and Burckhardt Compression.
Diversification Opportunities for Bucher Industries and Burckhardt Compression
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bucher and Burckhardt is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bucher Industries AG and Burckhardt Compression in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burckhardt Compression and Bucher Industries 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 Bucher Industries AG are associated (or correlated) with Burckhardt Compression. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burckhardt Compression has no effect on the direction of Bucher Industries i.e., Bucher Industries and Burckhardt Compression go up and down completely randomly.
Pair Corralation between Bucher Industries and Burckhardt Compression
Assuming the 90 days trading horizon Bucher Industries is expected to generate 280.2 times less return on investment than Burckhardt Compression. But when comparing it to its historical volatility, Bucher Industries AG is 1.21 times less risky than Burckhardt Compression. It trades about 0.0 of its potential returns per unit of risk. Burckhardt Compression is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 49,403 in Burckhardt Compression on August 25, 2024 and sell it today you would earn a total of 17,097 from holding Burckhardt Compression or generate 34.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bucher Industries AG vs. Burckhardt Compression
Performance |
| Timeline |
| Bucher Industries |
| Burckhardt Compression |
Bucher Industries and Burckhardt Compression Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bucher Industries and Burckhardt Compression
The main advantage of trading using opposite Bucher Industries and Burckhardt Compression positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bucher Industries position performs unexpectedly, Burckhardt Compression 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 Burckhardt Compression will offset losses from the drop in Burckhardt Compression's long position.| Bucher Industries vs. Emmi AG | Bucher Industries vs. EMS CHEMIE HOLDING AG | Bucher Industries vs. Barry Callebaut AG | Bucher Industries vs. Sulzer AG |
| Burckhardt Compression vs. Bucher Industries AG | Burckhardt Compression vs. Sulzer AG | Burckhardt Compression vs. Comet Holding AG | Burckhardt Compression vs. Belimo Holding |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |