Correlation Between Bachem Holding and Calida Holding

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

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

Diversification Opportunities for Bachem Holding and Calida Holding

-0.58

Correlation Coefficient

Bachem Holding  Calida Holding

Excellent diversification

The 3 months correlation between Bachem and Calida is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bachem Holding AG and Calida Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calida Holding AG and Bachem 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 Bachem Holding AG are associated (or correlated) with Calida Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calida Holding AG has no effect on the direction of Bachem Holding i.e., Bachem Holding and Calida Holding go up and down completely randomly.

Pair Corralation between Bachem Holding and Calida Holding

Assuming the 90 days trading horizon Bachem Holding AG is expected to generate 0.92 times more return on investment than Calida Holding. However, Bachem Holding AG is 1.09 times less risky than Calida Holding. It trades about 0.13 of its potential returns per unit of risk. Calida Holding AG is currently generating about -0.05 per unit of risk. If you would invest  4,865  in Bachem Holding AG on April 24, 2025 and sell it today you would earn a total of  745.00  from holding Bachem Holding AG or generate 15.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Bachem Holding AG  vs.  Calida Holding AG

Bachem Holding AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bachem Holding AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Bachem Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Calida Holding AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calida Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Bachem Holding and Calida Holding

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

The idea behind Bachem Holding AG and Calida Holding 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.