Correlation Between Aperture Health and Bayer AG
Can any of the company-specific risk be diversified away by investing in both Aperture Health and Bayer AG 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 Aperture Health and Bayer AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aperture Health and Bayer AG, you can compare the effects of market volatilities on Aperture Health and Bayer AG 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 Aperture Health with a short position of Bayer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aperture Health and Bayer AG.
Diversification Opportunities for Aperture Health and Bayer AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aperture and Bayer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aperture Health and Bayer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayer AG and Aperture Health 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 Aperture Health are associated (or correlated) with Bayer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayer AG has no effect on the direction of Aperture Health i.e., Aperture Health and Bayer AG go up and down completely randomly.
Pair Corralation between Aperture Health and Bayer AG
If you would invest 2,034 in Bayer AG on November 9, 2024 and sell it today you would earn a total of 156.00 from holding Bayer AG or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Aperture Health vs. Bayer AG
Performance |
| Timeline |
| Aperture Health |
| Bayer AG |
Aperture Health and Bayer AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aperture Health and Bayer AG
The main advantage of trading using opposite Aperture Health and Bayer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aperture Health position performs unexpectedly, Bayer AG 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 Bayer AG will offset losses from the drop in Bayer AG's long position.| Aperture Health vs. Martin Marietta Materials | Aperture Health vs. CRH PLC ADR | Aperture Health vs. Eagle Materials | Aperture Health vs. Summit Materials |
| Bayer AG vs. Union Pacific | Bayer AG vs. 51Talk Online Education | Bayer AG vs. Ihuman Inc | Bayer AG vs. Weibo Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |