Correlation Between ONWARD MEDICAL and PF Bakkafrost
Can any of the company-specific risk be diversified away by investing in both ONWARD MEDICAL and PF Bakkafrost 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 ONWARD MEDICAL and PF Bakkafrost into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONWARD MEDICAL BV and PF Bakkafrost, you can compare the effects of market volatilities on ONWARD MEDICAL and PF Bakkafrost 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 ONWARD MEDICAL with a short position of PF Bakkafrost. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONWARD MEDICAL and PF Bakkafrost.
Diversification Opportunities for ONWARD MEDICAL and PF Bakkafrost
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between ONWARD and 6BF is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ONWARD MEDICAL BV and PF Bakkafrost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF Bakkafrost and ONWARD MEDICAL 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 ONWARD MEDICAL BV are associated (or correlated) with PF Bakkafrost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF Bakkafrost has no effect on the direction of ONWARD MEDICAL i.e., ONWARD MEDICAL and PF Bakkafrost go up and down completely randomly.
Pair Corralation between ONWARD MEDICAL and PF Bakkafrost
Assuming the 90 days horizon ONWARD MEDICAL BV is expected to under-perform the PF Bakkafrost. In addition to that, ONWARD MEDICAL is 1.07 times more volatile than PF Bakkafrost. It trades about -0.03 of its total potential returns per unit of risk. PF Bakkafrost is currently generating about 0.09 per unit of volatility. If you would invest 5,540 in PF Bakkafrost on September 14, 2024 and sell it today you would earn a total of 125.00 from holding PF Bakkafrost or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONWARD MEDICAL BV vs. PF Bakkafrost
Performance |
| Timeline |
| ONWARD MEDICAL BV |
| PF Bakkafrost |
ONWARD MEDICAL and PF Bakkafrost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONWARD MEDICAL and PF Bakkafrost
The main advantage of trading using opposite ONWARD MEDICAL and PF Bakkafrost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONWARD MEDICAL position performs unexpectedly, PF Bakkafrost 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 PF Bakkafrost will offset losses from the drop in PF Bakkafrost's long position.| ONWARD MEDICAL vs. Moderna | ONWARD MEDICAL vs. BioNTech SE | ONWARD MEDICAL vs. Superior Plus Corp | ONWARD MEDICAL vs. SIVERS SEMICONDUCTORS AB |
| PF Bakkafrost vs. Clearside Biomedical | PF Bakkafrost vs. ONWARD MEDICAL BV | PF Bakkafrost vs. Merit Medical Systems | PF Bakkafrost vs. IMAGIN MEDICAL INC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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