Correlation Between Bioteque and BenQ Medical
Can any of the company-specific risk be diversified away by investing in both Bioteque and BenQ Medical 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 Bioteque and BenQ Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bioteque and BenQ Medical Technology, you can compare the effects of market volatilities on Bioteque and BenQ Medical 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 Bioteque with a short position of BenQ Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioteque and BenQ Medical.
Diversification Opportunities for Bioteque and BenQ Medical
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bioteque and BenQ is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bioteque and BenQ Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenQ Medical Technology and Bioteque 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 Bioteque are associated (or correlated) with BenQ Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenQ Medical Technology has no effect on the direction of Bioteque i.e., Bioteque and BenQ Medical go up and down completely randomly.
Pair Corralation between Bioteque and BenQ Medical
Assuming the 90 days trading horizon Bioteque is expected to generate 0.67 times more return on investment than BenQ Medical. However, Bioteque is 1.5 times less risky than BenQ Medical. It trades about 0.16 of its potential returns per unit of risk. BenQ Medical Technology is currently generating about -0.16 per unit of risk. If you would invest 12,350 in Bioteque on September 4, 2024 and sell it today you would earn a total of 250.00 from holding Bioteque or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bioteque vs. BenQ Medical Technology
Performance |
| Timeline |
| Bioteque |
| BenQ Medical Technology |
Bioteque and BenQ Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bioteque and BenQ Medical
The main advantage of trading using opposite Bioteque and BenQ Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioteque position performs unexpectedly, BenQ Medical 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 BenQ Medical will offset losses from the drop in BenQ Medical's long position.| Bioteque vs. StShine Optical Co | Bioteque vs. United Orthopedic | Bioteque vs. Excelsior Medical Co | Bioteque vs. Pacific Hospital Supply |
| BenQ Medical vs. StShine Optical Co | BenQ Medical vs. Bioteque | BenQ Medical vs. TTY Biopharm Co | BenQ Medical vs. Apex Biotechnology 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |