Correlation Between Biosynex and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both Biosynex and Affluent Medical 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 Biosynex and Affluent Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biosynex and Affluent Medical SAS, you can compare the effects of market volatilities on Biosynex and Affluent Medical 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 Biosynex with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biosynex and Affluent Medical.
Diversification Opportunities for Biosynex and Affluent Medical
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biosynex and Affluent is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Biosynex and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS and Biosynex 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 Biosynex are associated (or correlated) with Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of Biosynex i.e., Biosynex and Affluent Medical go up and down completely randomly.
Pair Corralation between Biosynex and Affluent Medical
Assuming the 90 days trading horizon Biosynex is expected to under-perform the Affluent Medical. In addition to that, Biosynex is 1.73 times more volatile than Affluent Medical SAS. It trades about -0.03 of its total potential returns per unit of risk. Affluent Medical SAS is currently generating about -0.02 per unit of volatility. If you would invest 183.00 in Affluent Medical SAS on September 3, 2024 and sell it today you would lose (23.00) from holding Affluent Medical SAS or give up 12.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biosynex vs. Affluent Medical SAS
Performance |
| Timeline |
| Biosynex |
| Affluent Medical SAS |
Biosynex and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biosynex and Affluent Medical
The main advantage of trading using opposite Biosynex and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biosynex position performs unexpectedly, Affluent Medical 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 Affluent Medical will offset losses from the drop in Affluent Medical's long position.| Biosynex vs. Novacyt | Biosynex vs. Eurobio Scientific SA | Biosynex vs. Biophytis SA | Biosynex vs. Intrasense |
| Affluent Medical vs. Biosynex | Affluent Medical vs. Novacyt | Affluent Medical vs. Biophytis SA | Affluent Medical vs. Intrasense |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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