Correlation Between Bucher Industries and Valartis Group
Can any of the company-specific risk be diversified away by investing in both Bucher Industries and Valartis Group 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 Valartis Group 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 Valartis Group AG, you can compare the effects of market volatilities on Bucher Industries and Valartis Group 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 Valartis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bucher Industries and Valartis Group.
Diversification Opportunities for Bucher Industries and Valartis Group
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bucher and Valartis is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bucher Industries AG and Valartis Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valartis Group AG 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 Valartis Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valartis Group AG has no effect on the direction of Bucher Industries i.e., Bucher Industries and Valartis Group go up and down completely randomly.
Pair Corralation between Bucher Industries and Valartis Group
Assuming the 90 days trading horizon Bucher Industries AG is expected to generate 0.39 times more return on investment than Valartis Group. However, Bucher Industries AG is 2.56 times less risky than Valartis Group. It trades about 0.06 of its potential returns per unit of risk. Valartis Group AG is currently generating about 0.01 per unit of risk. If you would invest 33,650 in Bucher Industries AG on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Bucher Industries AG or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
Bucher Industries AG vs. Valartis Group AG
Performance |
| Timeline |
| Bucher Industries |
| Valartis Group AG |
Bucher Industries and Valartis Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bucher Industries and Valartis Group
The main advantage of trading using opposite Bucher Industries and Valartis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bucher Industries position performs unexpectedly, Valartis Group 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 Valartis Group will offset losses from the drop in Valartis Group's long position.| Bucher Industries vs. OC Oerlikon Corp | Bucher Industries vs. Helvetia Holding AG | Bucher Industries vs. Swiss Life Holding | Bucher Industries vs. VAT Group AG |
| Valartis Group vs. Starrag Group Holding | Valartis Group vs. Zueblin Immobilien Holding | Valartis Group vs. Schlatter Industries AG | Valartis Group vs. Mikron 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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