Correlation Between Implenia and Bell AG
Can any of the company-specific risk be diversified away by investing in both Implenia and Bell 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 Implenia and Bell AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Implenia AG and Bell AG, you can compare the effects of market volatilities on Implenia and Bell 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 Implenia with a short position of Bell AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Implenia and Bell AG.
Diversification Opportunities for Implenia and Bell AG
Good diversification
The 3 months correlation between Implenia and Bell is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Implenia AG and Bell AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell AG and Implenia 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 Implenia AG are associated (or correlated) with Bell AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell AG has no effect on the direction of Implenia i.e., Implenia and Bell AG go up and down completely randomly.
Pair Corralation between Implenia and Bell AG
Assuming the 90 days trading horizon Implenia AG is expected to generate 1.74 times more return on investment than Bell AG. However, Implenia is 1.74 times more volatile than Bell AG. It trades about 0.02 of its potential returns per unit of risk. Bell AG is currently generating about 0.0 per unit of risk. If you would invest 2,769 in Implenia AG on September 2, 2024 and sell it today you would earn a total of 151.00 from holding Implenia AG or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Implenia AG vs. Bell AG
Performance |
| Timeline |
| Implenia AG |
| Bell AG |
Implenia and Bell AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Implenia and Bell AG
The main advantage of trading using opposite Implenia and Bell AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Implenia position performs unexpectedly, Bell 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 Bell AG will offset losses from the drop in Bell AG's long position.| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Sulzer AG |
| Bell AG vs. Emmi AG | Bell AG vs. Feintool International Holding | Bell AG vs. Implenia AG | Bell AG vs. Bossard 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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