Correlation Between BASF SE and Rigetti Computing

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

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

Diversification Opportunities for BASF SE and Rigetti Computing

-0.36

Correlation Coefficient

BASF SE  Rigetti Computing

Very good diversification

The 3 months correlation between BASF and Rigetti is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding BASF SE ADR and Rigetti Computing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rigetti Computing and BASF SE 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 BASF SE ADR are associated (or correlated) with Rigetti Computing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rigetti Computing has no effect on the direction of BASF SE i.e., BASF SE and Rigetti Computing go up and down completely randomly.

Pair Corralation between BASF SE and Rigetti Computing

Assuming the 90 days horizon BASF SE ADR is expected to under-perform the Rigetti Computing. But the otc stock apears to be less risky and, when comparing its historical volatility, BASF SE ADR is 4.25 times less risky than Rigetti Computing. The otc stock trades about -0.01 of its potential returns per unit of risk. The Rigetti Computing is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  1,277  in Rigetti Computing on July 13, 2025 and sell it today you would earn a total of  3,115  from holding Rigetti Computing or generate 243.93% return on investment over 90 days.

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

BASF SE ADR  vs.  Rigetti Computing

BASF SE ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days BASF SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, BASF SE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rigetti Computing

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rigetti Computing are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Rigetti Computing demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BASF SE and Rigetti Computing

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

The idea behind BASF SE ADR and Rigetti Computing 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.