Correlation Between Thurgauer Kantonalbank and Burckhardt Compression

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

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

Diversification Opportunities for Thurgauer Kantonalbank and Burckhardt Compression

0.86

Correlation Coefficient

Thurgauer Kantonalbank  Burckhardt Compression

Very poor diversification

The 3 months correlation between Thurgauer and Burckhardt is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Thurgauer Kantonalbank and Burckhardt Compression in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burckhardt Compression and Thurgauer Kantonalbank 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 Thurgauer Kantonalbank are associated (or correlated) with Burckhardt Compression. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burckhardt Compression has no effect on the direction of Thurgauer Kantonalbank i.e., Thurgauer Kantonalbank and Burckhardt Compression go up and down completely randomly.

Pair Corralation between Thurgauer Kantonalbank and Burckhardt Compression

Assuming the 90 days trading horizon Thurgauer Kantonalbank is expected to generate 3.18 times less return on investment than Burckhardt Compression. But when comparing it to its historical volatility, Thurgauer Kantonalbank is 1.11 times less risky than Burckhardt Compression. It trades about 0.15 of its potential returns per unit of risk. Burckhardt Compression is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest  49,888  in Burckhardt Compression on April 22, 2025 and sell it today you would earn a total of  20,212  from holding Burckhardt Compression or generate 40.51% return on investment over 90 days.

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

Thurgauer Kantonalbank  vs.  Burckhardt Compression

Thurgauer Kantonalbank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thurgauer Kantonalbank are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Thurgauer Kantonalbank may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 33 (%) 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.

Pair Trading with Thurgauer Kantonalbank and Burckhardt Compression

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

The idea behind Thurgauer Kantonalbank and Burckhardt Compression 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.