Correlation Between ADDvise Group and Bactiguard Holding
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By analyzing existing cross correlation between ADDvise Group B and Bactiguard Holding AB, you can compare the effects of market volatilities on ADDvise Group and Bactiguard Holding 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 ADDvise Group with a short position of Bactiguard Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADDvise Group and Bactiguard Holding.
Diversification Opportunities for ADDvise Group and Bactiguard Holding
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ADDvise and Bactiguard is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ADDvise Group B and Bactiguard Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiguard Holding and ADDvise Group 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 ADDvise Group B are associated (or correlated) with Bactiguard Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiguard Holding has no effect on the direction of ADDvise Group i.e., ADDvise Group and Bactiguard Holding go up and down completely randomly.
Pair Corralation between ADDvise Group and Bactiguard Holding
Assuming the 90 days trading horizon ADDvise Group B is expected to generate 1.07 times more return on investment than Bactiguard Holding. However, ADDvise Group is 1.07 times more volatile than Bactiguard Holding AB. It trades about -0.03 of its potential returns per unit of risk. Bactiguard Holding AB is currently generating about -0.05 per unit of risk. If you would invest 758.00 in ADDvise Group B on August 27, 2024 and sell it today you would lose (416.00) from holding ADDvise Group B or give up 54.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADDvise Group B vs. Bactiguard Holding AB
Performance |
| Timeline |
| ADDvise Group B |
| Bactiguard Holding |
ADDvise Group and Bactiguard Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADDvise Group and Bactiguard Holding
The main advantage of trading using opposite ADDvise Group and Bactiguard Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADDvise Group position performs unexpectedly, Bactiguard Holding 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 Bactiguard Holding will offset losses from the drop in Bactiguard Holding's long position.The idea behind ADDvise Group B and Bactiguard Holding AB 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.| Bactiguard Holding vs. Biotage AB | Bactiguard Holding vs. CellaVision AB | Bactiguard Holding vs. Bonesupport Holding AB | Bactiguard Holding vs. MedCap AB |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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