Correlation Between Burckhardt Compression and Also Holding

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

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

Diversification Opportunities for Burckhardt Compression and Also Holding

0.79

Correlation Coefficient

Burckhardt Compression  Also Holding

Poor diversification

The 3 months correlation between Burckhardt and Also is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Burckhardt Compression and Also Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Also Holding AG and Burckhardt Compression 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 Burckhardt Compression are associated (or correlated) with Also Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Also Holding AG has no effect on the direction of Burckhardt Compression i.e., Burckhardt Compression and Also Holding go up and down completely randomly.

Pair Corralation between Burckhardt Compression and Also Holding

Assuming the 90 days trading horizon Burckhardt Compression is expected to generate 1.04 times more return on investment than Also Holding. However, Burckhardt Compression is 1.04 times more volatile than Also Holding AG. It trades about 0.42 of its potential returns per unit of risk. Also Holding AG is currently generating about 0.21 per unit of risk. If you would invest  50,763  in Burckhardt Compression on April 23, 2025 and sell it today you would earn a total of  20,037  from holding Burckhardt Compression or generate 39.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Burckhardt Compression  vs.  Also Holding AG

Burckhardt Compression

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Burckhardt Compression are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Burckhardt Compression showed solid returns over the last few months and may actually be approaching a breakup point.

Also Holding AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Also Holding AG are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Also Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Burckhardt Compression and Also Holding

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

The idea behind Burckhardt Compression and Also 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.