Correlation Between Meyer Burger and Jungfraubahn Holding
Can any of the company-specific risk be diversified away by investing in both Meyer Burger 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 Meyer Burger and Jungfraubahn Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meyer Burger Tech and Jungfraubahn Holding AG, you can compare the effects of market volatilities on Meyer Burger 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 Meyer Burger with a short position of Jungfraubahn Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meyer Burger and Jungfraubahn Holding.
Diversification Opportunities for Meyer Burger and Jungfraubahn Holding
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Meyer and Jungfraubahn is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Meyer Burger Tech and Jungfraubahn Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jungfraubahn Holding and Meyer Burger 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 Meyer Burger Tech 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 Meyer Burger i.e., Meyer Burger and Jungfraubahn Holding go up and down completely randomly.
Pair Corralation between Meyer Burger and Jungfraubahn Holding
Assuming the 90 days trading horizon Meyer Burger Tech is expected to under-perform the Jungfraubahn Holding. In addition to that, Meyer Burger is 5.56 times more volatile than Jungfraubahn Holding AG. It trades about -0.08 of its total potential returns per unit of risk. Jungfraubahn Holding AG is currently generating about 0.11 per unit of volatility. If you would invest 18,340 in Jungfraubahn Holding AG on November 29, 2024 and sell it today you would earn a total of 340.00 from holding Jungfraubahn Holding AG or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Meyer Burger Tech vs. Jungfraubahn Holding AG
Performance |
| Timeline |
| Meyer Burger Tech |
| Jungfraubahn Holding |
Meyer Burger and Jungfraubahn Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meyer Burger and Jungfraubahn Holding
The main advantage of trading using opposite Meyer Burger and Jungfraubahn Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meyer Burger 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.| Meyer Burger vs. Relief Therapeutics Holding | Meyer Burger vs. Ams AG | Meyer Burger vs. Logitech International SA |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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