Correlation Between SIG Combibloc and Bossard Holding
Can any of the company-specific risk be diversified away by investing in both SIG Combibloc 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 SIG Combibloc and Bossard Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIG Combibloc Group and Bossard Holding AG, you can compare the effects of market volatilities on SIG Combibloc 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 SIG Combibloc with a short position of Bossard Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIG Combibloc and Bossard Holding.
Diversification Opportunities for SIG Combibloc and Bossard Holding
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SIG and Bossard is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SIG Combibloc Group 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 SIG Combibloc 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 SIG Combibloc Group 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 SIG Combibloc i.e., SIG Combibloc and Bossard Holding go up and down completely randomly.
Pair Corralation between SIG Combibloc and Bossard Holding
Assuming the 90 days trading horizon SIG Combibloc Group is expected to under-perform the Bossard Holding. But the stock apears to be less risky and, when comparing its historical volatility, SIG Combibloc Group is 1.06 times less risky than Bossard Holding. The stock trades about -0.01 of its potential returns per unit of risk. The Bossard Holding AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 20,023 in Bossard Holding AG on August 27, 2024 and sell it today you would earn a total of 27.00 from holding Bossard Holding AG or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.37% |
| Values | Daily Returns |
SIG Combibloc Group vs. Bossard Holding AG
Performance |
| Timeline |
| SIG Combibloc Group |
| Bossard Holding AG |
SIG Combibloc and Bossard Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIG Combibloc and Bossard Holding
The main advantage of trading using opposite SIG Combibloc and Bossard Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIG Combibloc 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.| SIG Combibloc vs. VAT Group AG | SIG Combibloc vs. Barry Callebaut AG | SIG Combibloc vs. SGS SA | SIG Combibloc vs. Galenica Sante 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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