Correlation Between Arbonia AG and Aluflexpack

Can any of the company-specific risk be diversified away by investing in both Arbonia AG and Aluflexpack 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 Arbonia AG and Aluflexpack into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Arbonia AG and Aluflexpack AG, you can compare the effects of market volatilities on Arbonia AG and Aluflexpack 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 Arbonia AG with a short position of Aluflexpack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbonia AG and Aluflexpack.

Diversification Opportunities for Arbonia AG and Aluflexpack

-0.46

Correlation Coefficient

Arbonia AG  Aluflexpack

Very good diversification

The 3 months correlation between Arbonia and Aluflexpack is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Arbonia AG and Aluflexpack AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluflexpack AG and Arbonia 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 Arbonia AG are associated (or correlated) with Aluflexpack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluflexpack AG has no effect on the direction of Arbonia AG i.e., Arbonia AG and Aluflexpack go up and down completely randomly.

Pair Corralation between Arbonia AG and Aluflexpack

Assuming the 90 days trading horizon Arbonia AG is expected to under-perform the Aluflexpack. In addition to that, Arbonia AG is 23.0 times more volatile than Aluflexpack AG. It trades about -0.15 of its total potential returns per unit of risk. Aluflexpack AG is currently generating about 0.14 per unit of volatility. If you would invest  1,565  in Aluflexpack AG on April 24, 2025 and sell it today you would earn a total of  35.00  from holding Aluflexpack AG or generate 2.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Arbonia AG  vs.  Aluflexpack AG

Arbonia AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arbonia AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Aluflexpack AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aluflexpack AG are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Aluflexpack is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Arbonia AG and Aluflexpack

The main advantage of trading using opposite Arbonia AG and Aluflexpack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbonia AG position performs unexpectedly, Aluflexpack 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 Aluflexpack will offset losses from the drop in Aluflexpack's long position.

The idea behind Arbonia AG and Aluflexpack AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.