Correlation Between Acticor Biotech and Nexity
Can any of the company-specific risk be diversified away by investing in both Acticor Biotech and Nexity 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 Acticor Biotech and Nexity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acticor Biotech SAS and Nexity, you can compare the effects of market volatilities on Acticor Biotech and Nexity 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 Acticor Biotech with a short position of Nexity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acticor Biotech and Nexity.
Diversification Opportunities for Acticor Biotech and Nexity
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acticor and Nexity is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Acticor Biotech SAS and Nexity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexity and Acticor Biotech 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 Acticor Biotech SAS are associated (or correlated) with Nexity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexity has no effect on the direction of Acticor Biotech i.e., Acticor Biotech and Nexity go up and down completely randomly.
Pair Corralation between Acticor Biotech and Nexity
Assuming the 90 days trading horizon Acticor Biotech SAS is expected to generate 4.13 times more return on investment than Nexity. However, Acticor Biotech is 4.13 times more volatile than Nexity. It trades about 0.03 of its potential returns per unit of risk. Nexity is currently generating about -0.02 per unit of risk. If you would invest 290.00 in Acticor Biotech SAS on September 3, 2024 and sell it today you would lose (261.00) from holding Acticor Biotech SAS or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acticor Biotech SAS vs. Nexity
Performance |
| Timeline |
| Acticor Biotech SAS |
| Nexity |
Acticor Biotech and Nexity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acticor Biotech and Nexity
The main advantage of trading using opposite Acticor Biotech and Nexity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acticor Biotech position performs unexpectedly, Nexity 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 Nexity will offset losses from the drop in Nexity's long position.| Acticor Biotech vs. Acheter Louer | Acticor Biotech vs. Spineguard | Acticor Biotech vs. Vallourec | Acticor Biotech vs. Manitou BF SA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |