Correlation Between OPUS GLOBAL and BASF SE
Can any of the company-specific risk be diversified away by investing in both OPUS GLOBAL and BASF SE 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 OPUS GLOBAL and BASF SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPUS GLOBAL Nyrt and BASF SE, you can compare the effects of market volatilities on OPUS GLOBAL and BASF SE 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 OPUS GLOBAL with a short position of BASF SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPUS GLOBAL and BASF SE.
Diversification Opportunities for OPUS GLOBAL and BASF SE
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OPUS and BASF is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding OPUS GLOBAL Nyrt and BASF SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASF SE and OPUS GLOBAL 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 OPUS GLOBAL Nyrt are associated (or correlated) with BASF SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASF SE has no effect on the direction of OPUS GLOBAL i.e., OPUS GLOBAL and BASF SE go up and down completely randomly.
Pair Corralation between OPUS GLOBAL and BASF SE
Assuming the 90 days trading horizon OPUS GLOBAL Nyrt is expected to generate 0.38 times more return on investment than BASF SE. However, OPUS GLOBAL Nyrt is 2.63 times less risky than BASF SE. It trades about -0.21 of its potential returns per unit of risk. BASF SE is currently generating about -0.11 per unit of risk. If you would invest 52,100 in OPUS GLOBAL Nyrt on September 3, 2024 and sell it today you would lose (1,900) from holding OPUS GLOBAL Nyrt or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
OPUS GLOBAL Nyrt vs. BASF SE
Performance |
| Timeline |
| OPUS GLOBAL Nyrt |
| BASF SE |
OPUS GLOBAL and BASF SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPUS GLOBAL and BASF SE
The main advantage of trading using opposite OPUS GLOBAL and BASF SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPUS GLOBAL position performs unexpectedly, BASF SE 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 BASF SE will offset losses from the drop in BASF SE's long position.| OPUS GLOBAL vs. NordTelekom Telecommunications Service | OPUS GLOBAL vs. Infineon Technologies AG | OPUS GLOBAL vs. Nutex Investments PLC | OPUS GLOBAL vs. AKKO Invest Nyrt |
| BASF SE vs. OTP Bank Nyrt | BASF SE vs. Infineon Technologies AG | BASF SE vs. Delta Technologies Nyrt | BASF SE vs. Commerzbank 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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