Correlation Between Teradata Corp and BB Biotech
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By analyzing existing cross correlation between Teradata Corp and BB Biotech AG, you can compare the effects of market volatilities on Teradata Corp and BB Biotech 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 Teradata Corp with a short position of BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teradata Corp and BB Biotech.
Diversification Opportunities for Teradata Corp and BB Biotech
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teradata and BBZA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Teradata Corp and BB Biotech AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Biotech AG and Teradata Corp 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 Teradata Corp are associated (or correlated) with BB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Biotech AG has no effect on the direction of Teradata Corp i.e., Teradata Corp and BB Biotech go up and down completely randomly.
Pair Corralation between Teradata Corp and BB Biotech
Assuming the 90 days horizon Teradata Corp is expected to generate 1.19 times more return on investment than BB Biotech. However, Teradata Corp is 1.19 times more volatile than BB Biotech AG. It trades about -0.05 of its potential returns per unit of risk. BB Biotech AG is currently generating about -0.17 per unit of risk. If you would invest 3,060 in Teradata Corp on October 12, 2024 and sell it today you would lose (40.00) from holding Teradata Corp or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teradata Corp vs. BB Biotech AG
Performance |
| Timeline |
| Teradata Corp |
| BB Biotech AG |
Teradata Corp and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teradata Corp and BB Biotech
The main advantage of trading using opposite Teradata Corp and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teradata Corp position performs unexpectedly, BB Biotech 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 BB Biotech will offset losses from the drop in BB Biotech's long position.The idea behind Teradata Corp and BB Biotech AG 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.| BB Biotech vs. Pebblebrook Hotel Trust | BB Biotech vs. DATA MODUL | BB Biotech vs. Linedata Services SA | BB Biotech vs. Teradata Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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