Correlation Between BASF SE and MUEHLHAN O

By analyzing existing cross correlation between BASF SE NA and MUEHLHAN O N, you can compare the effects of market volatilities on BASF SE and MUEHLHAN O 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 MUEHLHAN O. Check out your portfolio center. Please also check ongoing floating volatility patterns of BASF SE and MUEHLHAN O.

Specify exactly 2 symbols:

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

Diversification Opportunities for BASF SE and MUEHLHAN O

0.0
  Correlation Coefficient
BASF SE NA
MUEHLHAN O N

Pay attention - limited upside

The 3 months correlation between BASF SE and MUEHLHAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BASF SE NA O N and MUEHLHAN O N in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on MUEHLHAN O N 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 NA are associated (or correlated) with MUEHLHAN O. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUEHLHAN O N has no effect on the direction of BASF SE i.e., BASF SE and MUEHLHAN O go up and down completely randomly.

Pair Corralation between BASF SE and MUEHLHAN O

If you would invest  0.00  in MUEHLHAN O N on May 1, 2021 and sell it today you would earn a total of  0.00  from holding MUEHLHAN O N or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

BASF SE NA O N  vs.  MUEHLHAN O N

 Performance (%) 
      Timeline 
BASF SE NA 
 BASF SE Performance
0 of 100
Over the last 90 days BASF SE NA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BASF SE is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

BASF SE Price Channel

MUEHLHAN O N 
 MUEHLHAN Performance
0 of 100
Over the last 90 days MUEHLHAN O N has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MUEHLHAN O is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

BASF SE and MUEHLHAN O Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with BASF SE and MUEHLHAN O

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

MUEHLHAN O N

Pair trading matchups for MUEHLHAN O

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Fund Screener
Find activelly-traded funds from around the world traded on over 30 global exchanges
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go