Correlation Between BASF SE and Acm Research

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

By analyzing existing cross correlation between BASF SE ADR and Acm Research, you can compare the effects of market volatilities on BASF SE and Acm Research 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 BASF SE with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of BASF SE and Acm Research.

Diversification Opportunities for BASF SE and Acm Research

-0.4

Correlation Coefficient

BASF SE  Acm Research

Very good diversification

The 3 months correlation between BASF and Acm is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding BASF SE ADR and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and BASF SE 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 BASF SE ADR are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of BASF SE i.e., BASF SE and Acm Research go up and down completely randomly.

Pair Corralation between BASF SE and Acm Research

Assuming the 90 days horizon BASF SE is expected to generate 5.58 times less return on investment than Acm Research. But when comparing it to its historical volatility, BASF SE ADR is 2.69 times less risky than Acm Research. It trades about 0.08 of its potential returns per unit of risk. Acm Research is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,798  in Acm Research on July 7, 2025 and sell it today you would earn a total of  1,358  from holding Acm Research or generate 48.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BASF SE ADR  vs.  Acm Research

BASF SE ADR

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in BASF SE ADR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, BASF SE may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Acm Research

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Acm Research are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain primary indicators, Acm Research reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BASF SE and Acm Research

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

The idea behind BASF SE ADR and Acm Research 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.