Correlation Between Spineguard and Acticor Biotech
Can any of the company-specific risk be diversified away by investing in both Spineguard and Acticor Biotech 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 Spineguard and Acticor Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spineguard and Acticor Biotech SAS, you can compare the effects of market volatilities on Spineguard and Acticor Biotech 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 Spineguard with a short position of Acticor Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spineguard and Acticor Biotech.
Diversification Opportunities for Spineguard and Acticor Biotech
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Spineguard and Acticor is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Spineguard and Acticor Biotech SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acticor Biotech SAS and Spineguard 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 Spineguard are associated (or correlated) with Acticor Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acticor Biotech SAS has no effect on the direction of Spineguard i.e., Spineguard and Acticor Biotech go up and down completely randomly.
Pair Corralation between Spineguard and Acticor Biotech
Assuming the 90 days trading horizon Spineguard is expected to under-perform the Acticor Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Spineguard is 1.66 times less risky than Acticor Biotech. The stock trades about 0.0 of its potential returns per unit of risk. The Acticor Biotech SAS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 542.00 in Acticor Biotech SAS on September 12, 2024 and sell it today you would lose (517.00) from holding Acticor Biotech SAS or give up 95.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spineguard vs. Acticor Biotech SAS
Performance |
| Timeline |
| Spineguard |
| Acticor Biotech SAS |
Spineguard and Acticor Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spineguard and Acticor Biotech
The main advantage of trading using opposite Spineguard and Acticor Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spineguard position performs unexpectedly, Acticor Biotech 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 Acticor Biotech will offset losses from the drop in Acticor Biotech's long position.| Spineguard vs. Gensight Biologics SA | Spineguard vs. Innate Pharma | Spineguard vs. Poxel SA | Spineguard vs. Nanobiotix SA |
| Acticor Biotech vs. FNP Technologies SA | Acticor Biotech vs. Mauna Kea Technologies | Acticor Biotech vs. Technip Energies BV | Acticor Biotech vs. Entech SE SAS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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