Correlation Between Acticor Biotech and SCOR SE
Can any of the company-specific risk be diversified away by investing in both Acticor Biotech and SCOR SE 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 SCOR SE 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 SCOR SE, you can compare the effects of market volatilities on Acticor Biotech and SCOR SE 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 SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acticor Biotech and SCOR SE.
Diversification Opportunities for Acticor Biotech and SCOR SE
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acticor and SCOR is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Acticor Biotech SAS and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE 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 SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of Acticor Biotech i.e., Acticor Biotech and SCOR SE go up and down completely randomly.
Pair Corralation between Acticor Biotech and SCOR SE
Assuming the 90 days trading horizon Acticor Biotech SAS is expected to generate 5.06 times more return on investment than SCOR SE. However, Acticor Biotech is 5.06 times more volatile than SCOR SE. It trades about 0.03 of its potential returns per unit of risk. SCOR SE is currently generating about 0.0 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acticor Biotech SAS vs. SCOR SE
Performance |
| Timeline |
| Acticor Biotech SAS |
| SCOR SE |
Acticor Biotech and SCOR SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acticor Biotech and SCOR SE
The main advantage of trading using opposite Acticor Biotech and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acticor Biotech position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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