Correlation Between Biosynex and DBT SA
Can any of the company-specific risk be diversified away by investing in both Biosynex and DBT SA 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 DBT SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biosynex and DBT SA, you can compare the effects of market volatilities on Biosynex and DBT SA 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 DBT SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biosynex and DBT SA.
Diversification Opportunities for Biosynex and DBT SA
Modest diversification
The 3 months correlation between Biosynex and DBT is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Biosynex and DBT SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBT SA 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 DBT SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBT SA has no effect on the direction of Biosynex i.e., Biosynex and DBT SA go up and down completely randomly.
Pair Corralation between Biosynex and DBT SA
Assuming the 90 days trading horizon Biosynex is expected to generate 1.22 times less return on investment than DBT SA. In addition to that, Biosynex is 2.05 times more volatile than DBT SA. It trades about 0.15 of its total potential returns per unit of risk. DBT SA is currently generating about 0.38 per unit of volatility. If you would invest 35.00 in DBT SA on December 1, 2024 and sell it today you would earn a total of 9.00 from holding DBT SA or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biosynex vs. DBT SA
Performance |
| Timeline |
| Biosynex |
| DBT SA |
Biosynex and DBT SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biosynex and DBT SA
The main advantage of trading using opposite Biosynex and DBT SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biosynex position performs unexpectedly, DBT SA 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 DBT SA will offset losses from the drop in DBT SA's long position.| Biosynex vs. Novacyt | ||
| Biosynex vs. Eurobio Scientific SA | ||
| Biosynex vs. Biophytis SA | ||
| Biosynex 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |