Correlation Between Kinnevik Investment and Bioventix
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Bioventix 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 Kinnevik Investment and Bioventix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Bioventix, you can compare the effects of market volatilities on Kinnevik Investment and Bioventix 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 Kinnevik Investment with a short position of Bioventix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Bioventix.
Diversification Opportunities for Kinnevik Investment and Bioventix
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kinnevik and Bioventix is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Bioventix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioventix and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Bioventix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioventix has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Bioventix go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Bioventix
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the Bioventix. In addition to that, Kinnevik Investment is 1.25 times more volatile than Bioventix. It trades about -0.14 of its total potential returns per unit of risk. Bioventix is currently generating about -0.04 per unit of volatility. If you would invest 417,515 in Bioventix on September 3, 2024 and sell it today you would lose (47,515) from holding Bioventix or give up 11.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Bioventix
Performance |
| Timeline |
| Kinnevik Investment |
| Bioventix |
Kinnevik Investment and Bioventix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Bioventix
The main advantage of trading using opposite Kinnevik Investment and Bioventix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Bioventix 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 Bioventix will offset losses from the drop in Bioventix's long position.| Kinnevik Investment vs. Catalyst Media Group | Kinnevik Investment vs. CATLIN GROUP | Kinnevik Investment vs. Magnora ASA | Kinnevik Investment vs. RTW Venture Fund |
| Bioventix vs. Schroders Investment Trusts | Bioventix vs. Summit Materials Cl | Bioventix vs. Kinnevik Investment AB | Bioventix vs. New Residential 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 the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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