Correlation Between 21Shares Polkadot and BB Biotech
Can any of the company-specific risk be diversified away by investing in both 21Shares Polkadot and BB Biotech 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 21Shares Polkadot and BB Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21Shares Polkadot ETP and BB Biotech AG, you can compare the effects of market volatilities on 21Shares Polkadot and BB Biotech 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 21Shares Polkadot with a short position of BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Polkadot and BB Biotech.
Diversification Opportunities for 21Shares Polkadot and BB Biotech
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 21Shares and BION is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Polkadot ETP and BB Biotech AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Biotech AG and 21Shares Polkadot 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 21Shares Polkadot ETP are associated (or correlated) with BB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Biotech AG has no effect on the direction of 21Shares Polkadot i.e., 21Shares Polkadot and BB Biotech go up and down completely randomly.
Pair Corralation between 21Shares Polkadot and BB Biotech
Assuming the 90 days trading horizon 21Shares Polkadot ETP is expected to generate 4.92 times more return on investment than BB Biotech. However, 21Shares Polkadot is 4.92 times more volatile than BB Biotech AG. It trades about 0.19 of its potential returns per unit of risk. BB Biotech AG is currently generating about -0.05 per unit of risk. If you would invest 221.00 in 21Shares Polkadot ETP on August 28, 2024 and sell it today you would earn a total of 213.00 from holding 21Shares Polkadot ETP or generate 96.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
21Shares Polkadot ETP vs. BB Biotech AG
Performance |
| Timeline |
| 21Shares Polkadot ETP |
| BB Biotech AG |
21Shares Polkadot and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Polkadot and BB Biotech
The main advantage of trading using opposite 21Shares Polkadot and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Polkadot position performs unexpectedly, BB Biotech 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 BB Biotech will offset losses from the drop in BB Biotech's long position.| 21Shares Polkadot vs. UBSFund Solutions MSCI | 21Shares Polkadot vs. iShares VII PLC | 21Shares Polkadot vs. iShares SP 500 | 21Shares Polkadot vs. Lyxor UCITS Stoxx |
| BB Biotech vs. Swiss Life Holding | BB Biotech vs. Swiss Re AG | BB Biotech vs. Helvetia Holding AG | BB Biotech vs. Partners Group Holding |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |