Correlation Between Buzzi Unicem and Wienerberger Baustoffindustri

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

By analyzing existing cross correlation between Buzzi Unicem SpA and Wienerberger Baustoffindustrie, you can compare the effects of market volatilities on Buzzi Unicem and Wienerberger Baustoffindustri 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 Buzzi Unicem with a short position of Wienerberger Baustoffindustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Buzzi Unicem and Wienerberger Baustoffindustri.

Diversification Opportunities for Buzzi Unicem and Wienerberger Baustoffindustri

-0.12

Correlation Coefficient

Buzzi Unicem  Wienerberger Baustoffindustri

Good diversification

The 3 months correlation between Buzzi and Wienerberger is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Buzzi Unicem SpA and Wienerberger Baustoffindustrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wienerberger Baustoffindustri and Buzzi Unicem 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 Buzzi Unicem SpA are associated (or correlated) with Wienerberger Baustoffindustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wienerberger Baustoffindustri has no effect on the direction of Buzzi Unicem i.e., Buzzi Unicem and Wienerberger Baustoffindustri go up and down completely randomly.

Pair Corralation between Buzzi Unicem and Wienerberger Baustoffindustri

Assuming the 90 days horizon Buzzi Unicem SpA is expected to generate 0.64 times more return on investment than Wienerberger Baustoffindustri. However, Buzzi Unicem SpA is 1.55 times less risky than Wienerberger Baustoffindustri. It trades about 0.0 of its potential returns per unit of risk. Wienerberger Baustoffindustrie is currently generating about -0.01 per unit of risk. If you would invest  2,619  in Buzzi Unicem SpA on May 7, 2025 and sell it today you would lose (25.00) from holding Buzzi Unicem SpA or give up 0.95% of portfolio value over 90 days.

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

Buzzi Unicem SpA  vs.  Wienerberger Baustoffindustrie

Buzzi Unicem SpA

Risk-Adjusted Performance

Weakest

Over the last 90 days Buzzi Unicem SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Buzzi Unicem is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Wienerberger Baustoffindustri

Risk-Adjusted Performance

Weakest

Over the last 90 days Wienerberger Baustoffindustrie has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Wienerberger Baustoffindustri is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Buzzi Unicem and Wienerberger Baustoffindustri

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

The idea behind Buzzi Unicem SpA and Wienerberger Baustoffindustrie 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.