Correlation Between BRENNTAG and MUEHLHAN O

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

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

Diversification Opportunities for BRENNTAG and MUEHLHAN O

0.0
  Correlation Coefficient
BRENNTAG SE NA
MUEHLHAN O N

Pay attention - limited upside

The 3 months correlation between BRENNTAG and MUEHLHAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BRENNTAG 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 BRENNTAG 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 BRENNTAG 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 BRENNTAG i.e., BRENNTAG and MUEHLHAN O go up and down completely randomly.

Pair Corralation between BRENNTAG and MUEHLHAN O

If you would invest  0.00  in MUEHLHAN O N on April 30, 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
Accuracy100.0%
ValuesDaily Returns

BRENNTAG SE NA O N  vs.  MUEHLHAN O N

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

BRENNTAG and MUEHLHAN O Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with BRENNTAG and MUEHLHAN O

The main advantage of trading using opposite BRENNTAG and MUEHLHAN O positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRENNTAG 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.

BRENNTAG SE NA

Pair trading matchups for BRENNTAG

Advisorshares Pure vs. BRENNTAG
Ford vs. BRENNTAG
Cisco Systems vs. BRENNTAG
Visa vs. BRENNTAG
Total Stock vs. BRENNTAG
Ark Fintech vs. BRENNTAG
Cassava Sciences vs. BRENNTAG
Vmware vs. BRENNTAG
Pinterest vs. BRENNTAG
Microsoft Corp vs. BRENNTAG
Nio Inc vs. BRENNTAG
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against BRENNTAG as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. BRENNTAG's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, BRENNTAG's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to BRENNTAG SE NA.
The idea behind BRENNTAG 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

Twitter vs. MUEHLHAN O
Advisorshares Pure vs. MUEHLHAN O
Ark Fintech vs. MUEHLHAN O
Total Stock vs. MUEHLHAN O
Vmware vs. MUEHLHAN O
Nio Inc vs. MUEHLHAN O
Ford vs. MUEHLHAN O
Cisco Systems vs. MUEHLHAN O
Total Intl vs. MUEHLHAN O
Cassava Sciences vs. MUEHLHAN O
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against MUEHLHAN O as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. MUEHLHAN O's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, MUEHLHAN O's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to MUEHLHAN O N.
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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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