Correlation Between BVZ Holding and Jungfraubahn Holding
Can any of the company-specific risk be diversified away by investing in both BVZ Holding and Jungfraubahn 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 BVZ Holding and Jungfraubahn Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BVZ Holding AG and Jungfraubahn Holding AG, you can compare the effects of market volatilities on BVZ Holding and Jungfraubahn 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 BVZ Holding with a short position of Jungfraubahn Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of BVZ Holding and Jungfraubahn Holding.
Diversification Opportunities for BVZ Holding and Jungfraubahn Holding
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BVZ and Jungfraubahn is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BVZ Holding AG and Jungfraubahn Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jungfraubahn Holding and BVZ 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 BVZ Holding AG are associated (or correlated) with Jungfraubahn Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jungfraubahn Holding has no effect on the direction of BVZ Holding i.e., BVZ Holding and Jungfraubahn Holding go up and down completely randomly.
Pair Corralation between BVZ Holding and Jungfraubahn Holding
Assuming the 90 days trading horizon BVZ Holding AG is expected to under-perform the Jungfraubahn Holding. But the stock apears to be less risky and, when comparing its historical volatility, BVZ Holding AG is 1.38 times less risky than Jungfraubahn Holding. The stock trades about -0.19 of its potential returns per unit of risk. The Jungfraubahn Holding AG is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 16,440 in Jungfraubahn Holding AG on September 2, 2024 and sell it today you would earn a total of 400.00 from holding Jungfraubahn Holding AG or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.82% |
| Values | Daily Returns |
BVZ Holding AG vs. Jungfraubahn Holding AG
Performance |
| Timeline |
| BVZ Holding AG |
| Jungfraubahn Holding |
BVZ Holding and Jungfraubahn Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BVZ Holding and Jungfraubahn Holding
The main advantage of trading using opposite BVZ Holding and Jungfraubahn Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BVZ Holding position performs unexpectedly, Jungfraubahn 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 Jungfraubahn Holding will offset losses from the drop in Jungfraubahn Holding's long position.| BVZ Holding vs. Jungfraubahn Holding AG | BVZ Holding vs. Daetwyl I | BVZ Holding vs. Also Holding AG | BVZ Holding vs. Emmi AG |
| Jungfraubahn Holding vs. Emmi AG | Jungfraubahn Holding vs. Flughafen Zurich | Jungfraubahn Holding vs. Bergbahnen Engelberg Truebsee | Jungfraubahn Holding vs. EMS CHEMIE 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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