Correlation Between Bucher Industries and Komax Holding

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

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

Diversification Opportunities for Bucher Industries and Komax Holding

0.39

Correlation Coefficient

Bucher Industries  Komax Holding

Weak diversification

The 3 months correlation between Bucher and Komax is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bucher Industries AG and Komax Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komax Holding AG and Bucher Industries 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 Bucher Industries AG are associated (or correlated) with Komax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komax Holding AG has no effect on the direction of Bucher Industries i.e., Bucher Industries and Komax Holding go up and down completely randomly.

Pair Corralation between Bucher Industries and Komax Holding

Assuming the 90 days trading horizon Bucher Industries is expected to generate 1.82 times less return on investment than Komax Holding. But when comparing it to its historical volatility, Bucher Industries AG is 1.94 times less risky than Komax Holding. It trades about 0.06 of its potential returns per unit of risk. Komax Holding AG is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  10,520  in Komax Holding AG on May 6, 2025 and sell it today you would earn a total of  640.00  from holding Komax Holding AG or generate 6.08% return on investment over 90 days.

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

Bucher Industries AG  vs.  Komax Holding AG

Bucher Industries

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bucher Industries AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Bucher Industries is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Komax Holding AG

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Komax Holding AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Komax Holding may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bucher Industries and Komax Holding

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

The idea behind Bucher Industries AG and Komax Holding AG 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.