Correlation Between Biosynex and Eurofins Scientific
Can any of the company-specific risk be diversified away by investing in both Biosynex and Eurofins Scientific 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 Eurofins Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biosynex and Eurofins Scientific SE, you can compare the effects of market volatilities on Biosynex and Eurofins Scientific 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 Eurofins Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biosynex and Eurofins Scientific.
Diversification Opportunities for Biosynex and Eurofins Scientific
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Biosynex and Eurofins is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Biosynex and Eurofins Scientific SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurofins Scientific 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 Eurofins Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurofins Scientific has no effect on the direction of Biosynex i.e., Biosynex and Eurofins Scientific go up and down completely randomly.
Pair Corralation between Biosynex and Eurofins Scientific
Assuming the 90 days trading horizon Biosynex is expected to under-perform the Eurofins Scientific. In addition to that, Biosynex is 2.85 times more volatile than Eurofins Scientific SE. It trades about -0.15 of its total potential returns per unit of risk. Eurofins Scientific SE is currently generating about -0.04 per unit of volatility. If you would invest 4,700 in Eurofins Scientific SE on August 28, 2024 and sell it today you would lose (68.00) from holding Eurofins Scientific SE or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biosynex vs. Eurofins Scientific SE
Performance |
| Timeline |
| Biosynex |
| Eurofins Scientific |
Biosynex and Eurofins Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biosynex and Eurofins Scientific
The main advantage of trading using opposite Biosynex and Eurofins Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biosynex position performs unexpectedly, Eurofins Scientific 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 Eurofins Scientific will offset losses from the drop in Eurofins Scientific's long position.| Biosynex vs. Novacyt | Biosynex vs. Eurobio Scientific SA | Biosynex vs. Biophytis SA | Biosynex vs. Intrasense |
| Eurofins Scientific vs. Sartorius Stedim Biotech | Eurofins Scientific vs. Teleperformance SE | Eurofins Scientific vs. Dassault Systemes SE | Eurofins Scientific vs. Worldline 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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