Correlation Between Biosynex and Europlasma
Can any of the company-specific risk be diversified away by investing in both Biosynex and Europlasma 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 Europlasma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biosynex and Europlasma SA, you can compare the effects of market volatilities on Biosynex and Europlasma 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 Europlasma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biosynex and Europlasma.
Diversification Opportunities for Biosynex and Europlasma
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Biosynex and Europlasma is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Biosynex and Europlasma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europlasma 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 Europlasma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europlasma SA has no effect on the direction of Biosynex i.e., Biosynex and Europlasma go up and down completely randomly.
Pair Corralation between Biosynex and Europlasma
Assuming the 90 days trading horizon Biosynex is expected to under-perform the Europlasma. But the stock apears to be less risky and, when comparing its historical volatility, Biosynex is 5.34 times less risky than Europlasma. The stock trades about -0.24 of its potential returns per unit of risk. The Europlasma SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Europlasma SA on September 2, 2024 and sell it today you would lose (10.50) from holding Europlasma SA or give up 52.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biosynex vs. Europlasma SA
Performance |
| Timeline |
| Biosynex |
| Europlasma SA |
Biosynex and Europlasma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biosynex and Europlasma
The main advantage of trading using opposite Biosynex and Europlasma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biosynex position performs unexpectedly, Europlasma 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 Europlasma will offset losses from the drop in Europlasma'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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |