Correlation Between BASF SE and SGL CARBON

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

Specify exactly 2 symbols:

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

Diversification Opportunities for BASF SE and SGL CARBON

0.0
  Correlation Coefficient
BASF SE NA
SGL CARBON SE

Pay attention - limited upside

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

Pair Corralation between BASF SE and SGL CARBON

If you would invest (100.00)  in SGL CARBON SE on May 3, 2021 and sell it today you would earn a total of  100.00  from holding SGL CARBON SE or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

BASF SE NA O N  vs.  SGL CARBON SE 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

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

BASF SE and SGL CARBON Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with BASF SE and SGL CARBON

The main advantage of trading using opposite BASF SE and SGL CARBON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BASF SE position performs unexpectedly, SGL CARBON 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 SGL CARBON will offset losses from the drop in SGL CARBON's long position.
The idea behind BASF SE NA and SGL CARBON SE 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Equity Search
Search for activelly traded equities including funds and ETFs from over 30 global markets
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go