Correlation Between Plazza AG and Bossard Holding
Can any of the company-specific risk be diversified away by investing in both Plazza AG and Bossard 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 Plazza AG and Bossard Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plazza AG and Bossard Holding AG, you can compare the effects of market volatilities on Plazza AG and Bossard 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 Plazza AG with a short position of Bossard Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plazza AG and Bossard Holding.
Diversification Opportunities for Plazza AG and Bossard Holding
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Plazza and Bossard is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Plazza AG and Bossard Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bossard Holding AG and Plazza AG 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 Plazza AG are associated (or correlated) with Bossard Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bossard Holding AG has no effect on the direction of Plazza AG i.e., Plazza AG and Bossard Holding go up and down completely randomly.
Pair Corralation between Plazza AG and Bossard Holding
Assuming the 90 days trading horizon Plazza AG is expected to generate 0.28 times more return on investment than Bossard Holding. However, Plazza AG is 3.56 times less risky than Bossard Holding. It trades about 0.04 of its potential returns per unit of risk. Bossard Holding AG is currently generating about -0.01 per unit of risk. If you would invest 30,684 in Plazza AG on August 31, 2024 and sell it today you would earn a total of 2,016 from holding Plazza AG or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.87% |
| Values | Daily Returns |
Plazza AG vs. Bossard Holding AG
Performance |
| Timeline |
| Plazza AG |
| Bossard Holding AG |
Plazza AG and Bossard Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plazza AG and Bossard Holding
The main advantage of trading using opposite Plazza AG and Bossard Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plazza AG position performs unexpectedly, Bossard 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 Bossard Holding will offset losses from the drop in Bossard Holding's long position.| Plazza AG vs. PSP Swiss Property | Plazza AG vs. Swiss Prime Site | Plazza AG vs. Helvetia Holding AG | Plazza AG vs. Baloise Holding AG |
| Bossard Holding vs. VAT Group AG | Bossard Holding vs. Bucher Industries AG | Bossard Holding vs. EMS CHEMIE HOLDING AG | Bossard Holding vs. Komax 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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