Correlation Between Cable One and Baumer SA
Can any of the company-specific risk be diversified away by investing in both Cable One and Baumer SA 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 Cable One and Baumer SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cable One and Baumer SA, you can compare the effects of market volatilities on Cable One and Baumer SA 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 Cable One with a short position of Baumer SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cable One and Baumer SA.
Diversification Opportunities for Cable One and Baumer SA
Excellent diversification
The 3 months correlation between Cable and Baumer is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cable One and Baumer SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baumer SA and Cable One 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 Cable One are associated (or correlated) with Baumer SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baumer SA has no effect on the direction of Cable One i.e., Cable One and Baumer SA go up and down completely randomly.
Pair Corralation between Cable One and Baumer SA
Assuming the 90 days trading horizon Cable One is expected to under-perform the Baumer SA. In addition to that, Cable One is 2.45 times more volatile than Baumer SA. It trades about -0.29 of its total potential returns per unit of risk. Baumer SA is currently generating about 0.0 per unit of volatility. If you would invest 1,075 in Baumer SA on November 28, 2024 and sell it today you would lose (5.00) from holding Baumer SA or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cable One vs. Baumer SA
Performance |
| Timeline |
| Cable One |
| Baumer SA |
Cable One and Baumer SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cable One and Baumer SA
The main advantage of trading using opposite Cable One and Baumer SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cable One position performs unexpectedly, Baumer SA 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 Baumer SA will offset losses from the drop in Baumer SA's long position.| Cable One vs. Raytheon Technologies | Cable One vs. Spotify Technology SA | Cable One vs. BIONTECH SE DRN | Cable One vs. Guidewire Software, |
| Baumer SA vs. Baumer SA | Baumer SA vs. Biomm SA | Baumer SA vs. Bardella SA Indstrias | Baumer SA vs. Banco Alfa de |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets |