Correlation Between Crossject and BIO UV
Can any of the company-specific risk be diversified away by investing in both Crossject and BIO UV 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 Crossject and BIO UV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossject and BIO UV Group, you can compare the effects of market volatilities on Crossject and BIO UV 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 Crossject with a short position of BIO UV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossject and BIO UV.
Diversification Opportunities for Crossject and BIO UV
Poor diversification
The 3 months correlation between Crossject and BIO is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Crossject and BIO UV Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIO UV Group and Crossject 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 Crossject are associated (or correlated) with BIO UV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIO UV Group has no effect on the direction of Crossject i.e., Crossject and BIO UV go up and down completely randomly.
Pair Corralation between Crossject and BIO UV
Assuming the 90 days trading horizon Crossject is expected to generate 0.88 times more return on investment than BIO UV. However, Crossject is 1.14 times less risky than BIO UV. It trades about 0.12 of its potential returns per unit of risk. BIO UV Group is currently generating about -0.11 per unit of risk. If you would invest 195.00 in Crossject on September 3, 2024 and sell it today you would earn a total of 12.00 from holding Crossject or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crossject vs. BIO UV Group
Performance |
| Timeline |
| Crossject |
| BIO UV Group |
Crossject and BIO UV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crossject and BIO UV
The main advantage of trading using opposite Crossject and BIO UV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossject position performs unexpectedly, BIO UV 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 BIO UV will offset losses from the drop in BIO UV's long position.| Crossject vs. Quantum Genomics SA | Crossject vs. Biophytis SA | Crossject vs. Biosynex | Crossject vs. Poxel SA |
| BIO UV vs. Veolia Environnement VE | BIO UV vs. Derichebourg | BIO UV vs. Groupe Pizzorno Environnement | BIO UV vs. Aurea 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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