Correlation Between Borussia Dortmund and HIS
Can any of the company-specific risk be diversified away by investing in both Borussia Dortmund and HIS 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 Borussia Dortmund and HIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borussia Dortmund GmbH and HIS Co, you can compare the effects of market volatilities on Borussia Dortmund and HIS 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 Borussia Dortmund with a short position of HIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borussia Dortmund and HIS.
Diversification Opportunities for Borussia Dortmund and HIS
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Borussia and HIS is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Borussia Dortmund GmbH and HIS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIS Co and Borussia Dortmund 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 Borussia Dortmund GmbH are associated (or correlated) with HIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIS Co has no effect on the direction of Borussia Dortmund i.e., Borussia Dortmund and HIS go up and down completely randomly.
Pair Corralation between Borussia Dortmund and HIS
If you would invest 397.00 in Borussia Dortmund GmbH on February 6, 2024 and sell it today you would earn a total of 38.00 from holding Borussia Dortmund GmbH or generate 9.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 0.81% |
Values | Daily Returns |
Borussia Dortmund GmbH vs. HIS Co
Performance |
Timeline |
Borussia Dortmund GmbH |
HIS Co |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Borussia Dortmund and HIS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Borussia Dortmund and HIS
The main advantage of trading using opposite Borussia Dortmund and HIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borussia Dortmund position performs unexpectedly, HIS 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 HIS will offset losses from the drop in HIS's long position.Borussia Dortmund vs. New Wave Holdings | Borussia Dortmund vs. Guild Esports Plc | Borussia Dortmund vs. Network Media Group | Borussia Dortmund vs. ZoomerMedia Limited |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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