Correlation Between Analog Devices and BIOGEN
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By analyzing existing cross correlation between Analog Devices and BIOGEN INC 52, you can compare the effects of market volatilities on Analog Devices and BIOGEN 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 Analog Devices with a short position of BIOGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and BIOGEN.
Diversification Opportunities for Analog Devices and BIOGEN
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Analog and BIOGEN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and BIOGEN INC 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIOGEN INC 52 and Analog Devices 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 Analog Devices are associated (or correlated) with BIOGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIOGEN INC 52 has no effect on the direction of Analog Devices i.e., Analog Devices and BIOGEN go up and down completely randomly.
Pair Corralation between Analog Devices and BIOGEN
Considering the 90-day investment horizon Analog Devices is expected to under-perform the BIOGEN. In addition to that, Analog Devices is 1.36 times more volatile than BIOGEN INC 52. It trades about -0.05 of its total potential returns per unit of risk. BIOGEN INC 52 is currently generating about 0.11 per unit of volatility. If you would invest 9,273 in BIOGEN INC 52 on September 1, 2024 and sell it today you would earn a total of 257.00 from holding BIOGEN INC 52 or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Analog Devices vs. BIOGEN INC 52
Performance |
| Timeline |
| Analog Devices |
| BIOGEN INC 52 |
Analog Devices and BIOGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analog Devices and BIOGEN
The main advantage of trading using opposite Analog Devices and BIOGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices position performs unexpectedly, BIOGEN 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 BIOGEN will offset losses from the drop in BIOGEN's long position.| Analog Devices vs. NXP Semiconductors NV | Analog Devices vs. GSI Technology | Analog Devices vs. MaxLinear | Analog Devices vs. Texas Instruments Incorporated |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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