Correlation Between Biophytis and Biomerieux
Can any of the company-specific risk be diversified away by investing in both Biophytis and Biomerieux 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 Biophytis and Biomerieux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biophytis SA and Biomerieux SA, you can compare the effects of market volatilities on Biophytis and Biomerieux 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 Biophytis with a short position of Biomerieux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biophytis and Biomerieux.
Diversification Opportunities for Biophytis and Biomerieux
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biophytis and Biomerieux is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Biophytis SA and Biomerieux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomerieux SA and Biophytis 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 Biophytis SA are associated (or correlated) with Biomerieux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomerieux SA has no effect on the direction of Biophytis i.e., Biophytis and Biomerieux go up and down completely randomly.
Pair Corralation between Biophytis and Biomerieux
Assuming the 90 days trading horizon Biophytis SA is expected to under-perform the Biomerieux. In addition to that, Biophytis is 4.25 times more volatile than Biomerieux SA. It trades about -0.11 of its total potential returns per unit of risk. Biomerieux SA is currently generating about 0.01 per unit of volatility. If you would invest 9,440 in Biomerieux SA on August 28, 2024 and sell it today you would earn a total of 365.00 from holding Biomerieux SA or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biophytis SA vs. Biomerieux SA
Performance |
| Timeline |
| Biophytis SA |
| Biomerieux SA |
Biophytis and Biomerieux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biophytis and Biomerieux
The main advantage of trading using opposite Biophytis and Biomerieux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biophytis position performs unexpectedly, Biomerieux 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 Biomerieux will offset losses from the drop in Biomerieux's long position.| Biophytis vs. Novacyt | Biophytis vs. Biosynex | Biophytis vs. Neovacs SA | Biophytis vs. Quantum Genomics SA |
| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Teleperformance SE | Biomerieux vs. Dassault Systemes SE | Biomerieux 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |