Correlation Between Access Bio and TR Biofab
Can any of the company-specific risk be diversified away by investing in both Access Bio and TR Biofab 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 Access Bio and TR Biofab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Bio and TR Biofab Co, you can compare the effects of market volatilities on Access Bio and TR Biofab 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 Access Bio with a short position of TR Biofab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Bio and TR Biofab.
Diversification Opportunities for Access Bio and TR Biofab
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Access and 246710 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Access Bio and TR Biofab Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TR Biofab and Access Bio 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 Access Bio are associated (or correlated) with TR Biofab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TR Biofab has no effect on the direction of Access Bio i.e., Access Bio and TR Biofab go up and down completely randomly.
Pair Corralation between Access Bio and TR Biofab
Assuming the 90 days trading horizon Access Bio is expected to generate 0.92 times more return on investment than TR Biofab. However, Access Bio is 1.09 times less risky than TR Biofab. It trades about -0.06 of its potential returns per unit of risk. TR Biofab Co is currently generating about -0.24 per unit of risk. If you would invest 602,000 in Access Bio on August 29, 2024 and sell it today you would lose (27,000) from holding Access Bio or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Bio vs. TR Biofab Co
Performance |
| Timeline |
| Access Bio |
| TR Biofab |
Access Bio and TR Biofab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Bio and TR Biofab
The main advantage of trading using opposite Access Bio and TR Biofab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Bio position performs unexpectedly, TR Biofab 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 TR Biofab will offset losses from the drop in TR Biofab's long position.| Access Bio vs. DC Media Co | Access Bio vs. T3 Entertainment Co | Access Bio vs. Hyundai Home Shopping | Access Bio vs. SM Entertainment Co |
| TR Biofab vs. Korea Information Communications | TR Biofab vs. Union Materials Corp | TR Biofab vs. Home Center Holdings | TR Biofab vs. Cuckoo Homesys Co |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |