Correlation Between Schoeller Bleckmann and Gurktaler
Can any of the company-specific risk be diversified away by investing in both Schoeller Bleckmann and Gurktaler 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 Schoeller Bleckmann and Gurktaler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schoeller Bleckmann Oilfield Equipment and Gurktaler AG ST, you can compare the effects of market volatilities on Schoeller Bleckmann and Gurktaler 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 Schoeller Bleckmann with a short position of Gurktaler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schoeller Bleckmann and Gurktaler.
Diversification Opportunities for Schoeller Bleckmann and Gurktaler
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Schoeller and Gurktaler is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Schoeller Bleckmann Oilfield E and Gurktaler AG ST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gurktaler AG ST and Schoeller Bleckmann 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 Schoeller Bleckmann Oilfield Equipment are associated (or correlated) with Gurktaler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gurktaler AG ST has no effect on the direction of Schoeller Bleckmann i.e., Schoeller Bleckmann and Gurktaler go up and down completely randomly.
Pair Corralation between Schoeller Bleckmann and Gurktaler
Assuming the 90 days trading horizon Schoeller Bleckmann Oilfield Equipment is expected to under-perform the Gurktaler. But the stock apears to be less risky and, when comparing its historical volatility, Schoeller Bleckmann Oilfield Equipment is 5.02 times less risky than Gurktaler. The stock trades about -0.1 of its potential returns per unit of risk. The Gurktaler AG ST is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 900.00 in Gurktaler AG ST on August 23, 2024 and sell it today you would lose (50.00) from holding Gurktaler AG ST or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Schoeller Bleckmann Oilfield E vs. Gurktaler AG ST
Performance |
| Timeline |
| Schoeller Bleckmann |
| Gurktaler AG ST |
Schoeller Bleckmann and Gurktaler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schoeller Bleckmann and Gurktaler
The main advantage of trading using opposite Schoeller Bleckmann and Gurktaler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schoeller Bleckmann position performs unexpectedly, Gurktaler 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 Gurktaler will offset losses from the drop in Gurktaler's long position.| Schoeller Bleckmann vs. Voestalpine AG | Schoeller Bleckmann vs. Andritz AG | Schoeller Bleckmann vs. Wienerberger AG | Schoeller Bleckmann vs. OMV Aktiengesellschaft |
| Gurktaler vs. Gurktaler Aktiengesellschaft | Gurktaler vs. Josef Manner Comp | Gurktaler vs. Schoeller Bleckmann Oilfield Equipment | Gurktaler vs. AGRANA Beteiligungs Aktiengesellschaft |
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 CEOs Directory module to screen CEOs from public companies around the world.
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