Correlation Between OC Oerlikon and Bergbahnen Engelberg
Can any of the company-specific risk be diversified away by investing in both OC Oerlikon and Bergbahnen Engelberg 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 Bergbahnen Engelberg 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 Bergbahnen Engelberg Truebsee, you can compare the effects of market volatilities on OC Oerlikon and Bergbahnen Engelberg 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 Bergbahnen Engelberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of OC Oerlikon and Bergbahnen Engelberg.
Diversification Opportunities for OC Oerlikon and Bergbahnen Engelberg
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OERL and Bergbahnen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding OC Oerlikon Corp and Bergbahnen Engelberg Truebsee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergbahnen Engelberg 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 Bergbahnen Engelberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergbahnen Engelberg has no effect on the direction of OC Oerlikon i.e., OC Oerlikon and Bergbahnen Engelberg go up and down completely randomly.
Pair Corralation between OC Oerlikon and Bergbahnen Engelberg
Assuming the 90 days trading horizon OC Oerlikon Corp is expected to under-perform the Bergbahnen Engelberg. In addition to that, OC Oerlikon is 3.07 times more volatile than Bergbahnen Engelberg Truebsee. It trades about -0.17 of its total potential returns per unit of risk. Bergbahnen Engelberg Truebsee is currently generating about -0.37 per unit of volatility. If you would invest 4,020 in Bergbahnen Engelberg Truebsee on September 5, 2024 and sell it today you would lose (210.00) from holding Bergbahnen Engelberg Truebsee or give up 5.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OC Oerlikon Corp vs. Bergbahnen Engelberg Truebsee
Performance |
| Timeline |
| OC Oerlikon Corp |
| Bergbahnen Engelberg |
OC Oerlikon and Bergbahnen Engelberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OC Oerlikon and Bergbahnen Engelberg
The main advantage of trading using opposite OC Oerlikon and Bergbahnen Engelberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OC Oerlikon position performs unexpectedly, Bergbahnen Engelberg 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 Bergbahnen Engelberg will offset losses from the drop in Bergbahnen Engelberg's long position.| OC Oerlikon vs. Emmi AG | OC Oerlikon vs. EMS CHEMIE HOLDING AG | OC Oerlikon vs. Barry Callebaut AG | OC Oerlikon vs. VAT Group AG |
| Bergbahnen Engelberg vs. Implenia AG | Bergbahnen Engelberg vs. OC Oerlikon Corp | Bergbahnen Engelberg vs. Sulzer AG | Bergbahnen Engelberg vs. Swissquote Group Holding |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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