Correlation Between Neovacs SA and Biosynex
Can any of the company-specific risk be diversified away by investing in both Neovacs SA and Biosynex 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 Neovacs SA and Biosynex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neovacs SA and Biosynex, you can compare the effects of market volatilities on Neovacs SA and Biosynex 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 Neovacs SA with a short position of Biosynex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neovacs SA and Biosynex.
Diversification Opportunities for Neovacs SA and Biosynex
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Neovacs and Biosynex is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Neovacs SA and Biosynex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biosynex and Neovacs SA 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 Neovacs SA are associated (or correlated) with Biosynex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biosynex has no effect on the direction of Neovacs SA i.e., Neovacs SA and Biosynex go up and down completely randomly.
Pair Corralation between Neovacs SA and Biosynex
Assuming the 90 days trading horizon Neovacs SA is expected to under-perform the Biosynex. But the stock apears to be less risky and, when comparing its historical volatility, Neovacs SA is 1.52 times less risky than Biosynex. The stock trades about -0.58 of its potential returns per unit of risk. The Biosynex is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 124.00 in Biosynex on October 25, 2024 and sell it today you would earn a total of 40.00 from holding Biosynex or generate 32.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neovacs SA vs. Biosynex
Performance |
| Timeline |
| Neovacs SA |
| Biosynex |
Neovacs SA and Biosynex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neovacs SA and Biosynex
The main advantage of trading using opposite Neovacs SA and Biosynex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neovacs SA position performs unexpectedly, Biosynex 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 Biosynex will offset losses from the drop in Biosynex's long position.| Neovacs SA vs. Europlasma SA | Neovacs SA vs. Biophytis SA | Neovacs SA vs. Cellectis | Neovacs SA vs. Innate Pharma |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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