Correlation Between Bergbahnen Engelberg and Implenia
Can any of the company-specific risk be diversified away by investing in both Bergbahnen Engelberg and Implenia 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 Bergbahnen Engelberg and Implenia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bergbahnen Engelberg Truebsee and Implenia AG, you can compare the effects of market volatilities on Bergbahnen Engelberg and Implenia 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 Bergbahnen Engelberg with a short position of Implenia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bergbahnen Engelberg and Implenia.
Diversification Opportunities for Bergbahnen Engelberg and Implenia
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bergbahnen and Implenia is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bergbahnen Engelberg Truebsee and Implenia AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implenia AG and Bergbahnen Engelberg 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 Bergbahnen Engelberg Truebsee are associated (or correlated) with Implenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implenia AG has no effect on the direction of Bergbahnen Engelberg i.e., Bergbahnen Engelberg and Implenia go up and down completely randomly.
Pair Corralation between Bergbahnen Engelberg and Implenia
Assuming the 90 days trading horizon Bergbahnen Engelberg Truebsee is expected to under-perform the Implenia. But the stock apears to be less risky and, when comparing its historical volatility, Bergbahnen Engelberg Truebsee is 2.0 times less risky than Implenia. The stock trades about -0.11 of its potential returns per unit of risk. The Implenia AG is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,075 in Implenia AG on September 4, 2024 and sell it today you would lose (60.00) from holding Implenia AG or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bergbahnen Engelberg Truebsee vs. Implenia AG
Performance |
| Timeline |
| Bergbahnen Engelberg |
| Implenia AG |
Bergbahnen Engelberg and Implenia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bergbahnen Engelberg and Implenia
The main advantage of trading using opposite Bergbahnen Engelberg and Implenia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bergbahnen Engelberg position performs unexpectedly, Implenia 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 Implenia will offset losses from the drop in Implenia's long position.| Bergbahnen Engelberg vs. Implenia AG | Bergbahnen Engelberg vs. OC Oerlikon Corp | Bergbahnen Engelberg vs. Sulzer AG | Bergbahnen Engelberg vs. Swissquote Group Holding |
| Implenia vs. Helvetia Holding AG | Implenia vs. Bucher Industries AG | Implenia vs. Hubersuhner AG | Implenia vs. Stadler Rail 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |