Correlation Between Burkhalter Holding and Carlo Gavazzi
Can any of the company-specific risk be diversified away by investing in both Burkhalter Holding and Carlo Gavazzi 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 Burkhalter Holding and Carlo Gavazzi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burkhalter Holding AG and Carlo Gavazzi Holding, you can compare the effects of market volatilities on Burkhalter Holding and Carlo Gavazzi 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 Burkhalter Holding with a short position of Carlo Gavazzi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burkhalter Holding and Carlo Gavazzi.
Diversification Opportunities for Burkhalter Holding and Carlo Gavazzi
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Burkhalter and Carlo is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Burkhalter Holding AG and Carlo Gavazzi Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlo Gavazzi Holding and Burkhalter Holding 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 Burkhalter Holding AG are associated (or correlated) with Carlo Gavazzi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlo Gavazzi Holding has no effect on the direction of Burkhalter Holding i.e., Burkhalter Holding and Carlo Gavazzi go up and down completely randomly.
Pair Corralation between Burkhalter Holding and Carlo Gavazzi
Assuming the 90 days trading horizon Burkhalter Holding AG is expected to generate 0.3 times more return on investment than Carlo Gavazzi. However, Burkhalter Holding AG is 3.32 times less risky than Carlo Gavazzi. It trades about 0.09 of its potential returns per unit of risk. Carlo Gavazzi Holding is currently generating about -0.1 per unit of risk. If you would invest 8,750 in Burkhalter Holding AG on September 12, 2024 and sell it today you would earn a total of 400.00 from holding Burkhalter Holding AG or generate 4.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Burkhalter Holding AG vs. Carlo Gavazzi Holding
Performance |
Timeline |
Burkhalter Holding |
Carlo Gavazzi Holding |
Burkhalter Holding and Carlo Gavazzi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Burkhalter Holding and Carlo Gavazzi
The main advantage of trading using opposite Burkhalter Holding and Carlo Gavazzi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burkhalter Holding position performs unexpectedly, Carlo Gavazzi 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 Carlo Gavazzi will offset losses from the drop in Carlo Gavazzi's long position.Burkhalter Holding vs. mobilezone ag | Burkhalter Holding vs. Cembra Money Bank | Burkhalter Holding vs. OC Oerlikon Corp | Burkhalter Holding vs. Banque Cantonale |
Carlo Gavazzi vs. Bucher Industries AG | Carlo Gavazzi vs. Burkhalter Holding AG | Carlo Gavazzi vs. mobilezone ag | Carlo Gavazzi vs. Also 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |