Correlation Between Biosynex and Bernard Loisea
Can any of the company-specific risk be diversified away by investing in both Biosynex and Bernard Loisea 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 Bernard Loisea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biosynex and Bernard Loisea, you can compare the effects of market volatilities on Biosynex and Bernard Loisea 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 Bernard Loisea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biosynex and Bernard Loisea.
Diversification Opportunities for Biosynex and Bernard Loisea
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Biosynex and Bernard is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Biosynex and Bernard Loisea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bernard Loisea 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 Bernard Loisea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bernard Loisea has no effect on the direction of Biosynex i.e., Biosynex and Bernard Loisea go up and down completely randomly.
Pair Corralation between Biosynex and Bernard Loisea
Assuming the 90 days trading horizon Biosynex is expected to under-perform the Bernard Loisea. But the stock apears to be less risky and, when comparing its historical volatility, Biosynex is 1.34 times less risky than Bernard Loisea. The stock trades about -0.07 of its potential returns per unit of risk. The Bernard Loisea is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 360.00 in Bernard Loisea on November 19, 2024 and sell it today you would lose (40.00) from holding Bernard Loisea or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.63% |
| Values | Daily Returns |
Biosynex vs. Bernard Loisea
Performance |
| Timeline |
| Biosynex |
| Bernard Loisea |
Biosynex and Bernard Loisea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biosynex and Bernard Loisea
The main advantage of trading using opposite Biosynex and Bernard Loisea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biosynex position performs unexpectedly, Bernard Loisea 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 Bernard Loisea will offset losses from the drop in Bernard Loisea's long position.| Biosynex vs. Novacyt | Biosynex vs. Eurobio Scientific SA | Biosynex vs. Biophytis SA | Biosynex vs. Intrasense |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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