Correlation Between Burkhalter Holding and Aluflexpack
Can any of the company-specific risk be diversified away by investing in both Burkhalter Holding 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 Burkhalter Holding and Aluflexpack 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 Aluflexpack AG, you can compare the effects of market volatilities on Burkhalter Holding 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 Burkhalter Holding with a short position of Aluflexpack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burkhalter Holding and Aluflexpack.
Diversification Opportunities for Burkhalter Holding and Aluflexpack
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Burkhalter and Aluflexpack is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Burkhalter Holding AG and Aluflexpack AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluflexpack AG 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 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 Burkhalter Holding i.e., Burkhalter Holding and Aluflexpack go up and down completely randomly.
Pair Corralation between Burkhalter Holding and Aluflexpack
Assuming the 90 days trading horizon Burkhalter Holding AG is expected to generate 3.77 times more return on investment than Aluflexpack. However, Burkhalter Holding is 3.77 times more volatile than Aluflexpack AG. It trades about 0.29 of its potential returns per unit of risk. Aluflexpack AG is currently generating about 0.1 per unit of risk. If you would invest 11,634 in Burkhalter Holding AG on April 23, 2025 and sell it today you would earn a total of 2,326 from holding Burkhalter Holding AG or generate 19.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.39% |
Values | Daily Returns |
Burkhalter Holding AG vs. Aluflexpack AG
Performance |
Timeline |
Burkhalter Holding |
Aluflexpack AG |
Burkhalter Holding and Aluflexpack Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Burkhalter Holding and Aluflexpack
The main advantage of trading using opposite Burkhalter Holding and Aluflexpack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burkhalter Holding 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.Burkhalter Holding vs. Helvetia Holding AG | Burkhalter Holding vs. Bucher Industries AG | Burkhalter Holding vs. Hubersuhner AG | Burkhalter Holding vs. Stadler Rail AG |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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