Correlation Between OC Oerlikon and Burkhalter Holding
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon and Burkhalter 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 OC Oerlikon and Burkhalter Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OC Oerlikon Corp and Burkhalter Holding AG, you can compare the effects of market volatilities on OC Oerlikon and Burkhalter 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 OC Oerlikon with a short position of Burkhalter Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and Burkhalter Holding.
Diversification Opportunities for OC Oerlikon and Burkhalter Holding
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OERL and Burkhalter is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp and Burkhalter Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burkhalter Holding and OC Oerlikon 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 OC Oerlikon Corp are associated (or correlated) with Burkhalter Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burkhalter Holding has no effect on the direction of OC Oerlikon i.e., OC Oerlikon and Burkhalter Holding go up and down completely randomly.
Pair Corralation between OC Oerlikon and Burkhalter Holding
Assuming the 90 days trading horizon OC Oerlikon is expected to generate 1.72 times less return on investment than Burkhalter Holding. In addition to that, OC Oerlikon is 1.65 times more volatile than Burkhalter Holding AG. It trades about 0.12 of its total potential returns per unit of risk. Burkhalter Holding AG is currently generating about 0.35 per unit of volatility. If you would invest 9,240 in Burkhalter Holding AG on November 3, 2024 and sell it today you would earn a total of 620.00 from holding Burkhalter Holding AG or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OC Oerlikon Corp vs. Burkhalter Holding AG
Performance |
| Timeline |
| OC Oerlikon Corp |
| Burkhalter Holding |
OC Oerlikon and Burkhalter Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OC Oerlikon and Burkhalter Holding
The main advantage of trading using opposite OC Oerlikon and Burkhalter Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon position performs unexpectedly, Burkhalter 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 Burkhalter Holding will offset losses from the drop in Burkhalter Holding's long position.| OC Oerlikon vs. Sulzer AG | OC Oerlikon vs. Helvetia Holding AG | OC Oerlikon vs. Swiss Life Holding | OC Oerlikon vs. Adecco Group AG |
| Burkhalter Holding vs. mobilezone ag | Burkhalter Holding vs. Cembra Money Bank | Burkhalter Holding vs. OC Oerlikon Corp | Burkhalter Holding vs. Banque Cantonale |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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