Correlation Between Bystronic and Airesis SA

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

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

Diversification Opportunities for Bystronic and Airesis SA

-0.06

Correlation Coefficient

Bystronic  Airesis SA

Good diversification

The 3 months correlation between Bystronic and Airesis is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bystronic AG and Airesis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airesis SA and Bystronic 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 Bystronic AG are associated (or correlated) with Airesis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airesis SA has no effect on the direction of Bystronic i.e., Bystronic and Airesis SA go up and down completely randomly.

Pair Corralation between Bystronic and Airesis SA

Assuming the 90 days trading horizon Bystronic AG is expected to generate 0.21 times more return on investment than Airesis SA. However, Bystronic AG is 4.66 times less risky than Airesis SA. It trades about 0.36 of its potential returns per unit of risk. Airesis SA is currently generating about -0.04 per unit of risk. If you would invest  22,650  in Bystronic AG on April 23, 2025 and sell it today you would earn a total of  16,250  from holding Bystronic AG or generate 71.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.16%
Values	Daily Returns

Bystronic AG  vs.  Airesis SA

Bystronic AG

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Bystronic AG are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Bystronic showed solid returns over the last few months and may actually be approaching a breakup point.

Airesis SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Airesis SA 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.

Pair Trading with Bystronic and Airesis SA

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

The idea behind Bystronic AG and Airesis SA 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.